Exhibit 10.1


 


ALL COMMUNICATIONS SHOULD INCLUDE THE CONTRACT NUMBER SHOWN IN BLOCK 5
BELOW


 


	
  NOTICE OF AWARD, STATEMENT, AND RELEASE DOCUMENT

   

  	
  1.

  	
  PAGE 1 OF 3

  
	
   

  	
   

  	
   

  
	
  2.  FROM:    (Name and address of Sales Office

  	
  3.

  	
  DATE
  OF AWARD

  
	
   

  	
   

  	
   

  
	
  Defense
  Reutilization and Marketing Service

  74
  North Washington Avenue   DRMS J-362

  Battle
  Creek, MI 49037

  	
  4.

  	
   

  INVITATION
  NO.

  08-0001

  
	
  5.

  	
   

  CONTRACT
  NO.

  08-0001-0001

  
	
  6.  TO:  (Name
  and address of Purchaser)

   

  Liquidity
  Services, Incorporated

  1920 L Street, NW 6th Floor

  Washington, DC 20036  

  	
  7.

  	
   

  BIDDER
  NO.

  3001287806

  
	
   

  	
   

  
	
  8.

  	
  (PAID STAMP)

  
	
   

  
	
   

  
	
   

  
	
  (For Release of Property Only)

  
	
   

  	
   

  
	
  This is to inform you
  that your firm has been awarded a contract of sale for

  the following materials as a result of the above numbered Invitation to Bid.

  	
  9. PROPERTY MUST BE
  REMOVED BY (Final date of removal)

  
				



 


	
  10.

  	
  SURPLUS AND/OR EXCHANGE/SALE ITEMS

   

  
	
   

  	
   

  
	
  ITEM

  NO.

  	
   

  	
  DESCRIPTION

  	
   

  	
  QTY

  	
   

  	
  UNIT

  	
   

  	
  UNIT
  PRICE

  	
   

  	
  TOTAL
  PRICE

  	
   

  	
  QUANTITY

  RELEASED

  
	
  a

  	
   

  	
  b

  	
   

  	
  c

  	
   

  	
  d

  	
   

  	
  e

  	
   

  	
  f

  	
   

  	
  g

  
	
   

  	
   

  	
  See
  attachment to Notice of Award (page 2)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Final
  IFB08-0001 and Amendments 1-9 are incorporated.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  RELEASE

  	
  12.

  	
   

  	
  STATEMENT
  OF ACCOUNT

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  An
  agent of the purchaser obtaining release of the material must present
  purchaser authorization.

  	
  Payment
  of amount due the U.S. Government must be made prior to removal of any
  material. Refer to the IFB for all methods of acceptable payment.

   

  
	
  A.

  	
  I
  HAVE RECEIVED THE ABOVE LISTED MATERIALS IN THE  QUANTITY INDICATED AND HAVE ACCEPTED SAME IN COMPLIANCE WITH THE TERMS
  OF ABOVE NUMBERED  CONTRACT.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  TOTAL
  CONTRACT PRICE

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  LESS
  DEPOSIT

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  C.

  	
  BALANCE
  DUE

  	
  $

  	
   

  
	
   

  	
  TYPED OR PRINTED NAME AND SIGNATURE OF PURCHASER OR AUTHORIZED AGENT

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D.

  	
  REFUND  DUE

  	
  $

  	
   

  
	
  B.

  	
  RELEASED
  BY (Signature)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  E.

  	
  STORAGE
  CHARGES

  	
  $

  	
   

  
	
  C.

  	
  DATE
  

  	
  D.  VOUCHER
  NO.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7-31-08

  	
   

  	
  F.

  	
  PAYMENT
  RECEIVED

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
  SALES
  CONTRACTING OFFICER (Typed name &

  	
   

  	
   

  	
   

  	
   

  
	
   Signature)

  	
   

  	
  G.

  	
  REFUND
  MADE

  	
   

  	
   

  
	
   

  	
  NEIL
  A. WATTERS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/
  Neil A. Watters

  	
   

  	
   

  	
   

  	
   

  	
   

  
																				



 


DRMS FORM 1427, AUG 98 (EF)                 IMPORTANT NOTICE PAGE 2                 (Previous edition to be used exhausted)


 


1

















 


Performance period of this contract is 36 months from the date of the
initial delivery order.


 


Description of the property is as identified in IFB 08-0001.


 


Bid percentages are as follows:


 


	
  Sales Item
  Number:

  	
  1

  
	
  Bid
  Percentage (Up-Front Property Payment):

  	
  2.2577% of
  acquisition value 

  
	
  Back-End
  Property Payment (120 days of issue):

  	
  1.0% of
  acquisition value 

  
	
  Total
  Purchase Price Percentage:

  	
  3.2577% of
  acquisition value

  
	
  Estimated
  Total Contract Price:

  	
  $140,000,000.00

  



 


	
  Bid Deposit Paid:

  	
  $

  	
  100,000.00

  
	
  Payment Deposit (due within 10 days of award)

  	
  $

  	
  500,000.00

  
	
  Financial Guarantee Bond (due within 30 days of award)

  	
  $

  	
  4,500,000.00

  



 


This contract includes final IFB 08-0001, Amendments 1 through 9, and
entire technical proposal submitted in support of RFTP 08-0001.


 


	
   

  
	
  /s/ Neil A. Watters

  	
   

  	
      07-31-08

  
	
  NEIL A. WATTERS

  	
  DATE

  
	
  Sales Contracting Officer

  	
   

  



 


2

















 


DISPOSAL NOTIFICATION TO ALL PURCHASERS AND SUB-PURCHASERS


 


The
use, disposition, export and reexport of this property is subject to all
applicable U.S laws and  regulations,
including the Arms Export Control Act (22 CFR 2751 et seq.), the Export
Administration Act of 1979 (560 U.S.C, App. 2401 et seq.); International
Traffic in Arms Regulations (22 CFR 120 et seq.); Export Administration
Regulations (15 CFR 730 et seq.); Foreign Assets Control Regulations (31 CFR 500
et seq.); and the Espionage Act
(37 U.S.C. 791 et seq.) which among other things, prohibits:


 


a.     The making of false
statements and concealment of any material information regarding the use or
disposition, export or reexport of the property, and


 


c.     Any use or disposition,
export or reexport of the property which is not authorized in accordance with
the provisions of this agreement.


 


Before
any reexport or reexport of this property is attempted, contact the Office of
Defense Trade Controls, Department of State and the Bureau of Export
Administration, Department of Commerce for export licensing


 


REMARKS


 


PART 2 - TIPS FOR PURCHASERS


 


You
have been awarded the items listed on the reverse side of this document. In
order to minimize confusion or any chance of you having to pay storage charges
or your contract being terminated for failure to pay for and remove property,
you should do the following:


 


1.  If there is an amount due
indicated in Block 12 C, you should remit this immediately to the sales office
indicated in Block 2, NO PROPERTY CAN BE REMOVED UNTIL PAID FOR. Unless
otherwise indicated in the IFB, MAKE CHECKS PAYABLE TO:


 


U.S.
TREASURY. Receipts are not furnished.


 


2.  (Read Block 9). This is your
final free removal date. If you do not remove the property by this date you
will be placed in Default and storage charges will be assessed.


 


3.  Make arrangement for pickup of
property and send release authorizations to both the carrier and the disposal
officer where the material is located. THE GOVERNMENT WILL NOT ACT AS LIAISON
IN ANY FASHION BETWEEN PURCHASER AND CARRIER. If desired, a list of carriers
serving the area is available from the Sales Office indicated on the reverse
side.


 


4.  Furnish your agent or carrier
complete info needed to remove the property. THE GOVERNMENT WILL ONLY MAKE
INITIAL PLACEMENT WHERE IT IS PROVIDED THE GOVERNMENT LOADS. PLACING, HANDLING,
PACKING, BRACING, BLOCKING ETC., ARE YOUR RESPONSIBILITY.


 


5.  If the IFB provided that
purchaser loads, then you must make all arrangements for loading including any
equipment you may require to accomplish such loading. IN THESE INSTANCES, THE
GOVERNMENT WILL PROVIDE NO ASSISTANCE.


 


6.  Follow up with your carrier or
agent frequently, especially if you are in default. Extensions or
reinstatements of your contract cannot be made because of your agent or
carrier’s failure to do something.


 


7.  Upon receipt of property,
inspect it immediately for misdescription. Misdescription claims filed after 30
days from date of removal will be denied as untimely filed.


 


8.  If you have any questions
regarding this award, contact the Sales Contracting Officer at once.


 


3
















 





 


SURPLUS USEABLE PROPERTY SALE


 


DEFENSE REUTILIZATION AND MARKETING SERVICE


 


INVITATION FOR BID

Number 08-0001


 


STEP TWO OF TWO-STEP SOLICITATION


 


May 2008

(Updated with Amendments 1-6)


 

















 


SURPLUS USEABLE PROPERTY

INVITATION FOR BID

Number 08-0001


 


TABLE OF CONTENTS


 


	
  GENERAL STATEMENTS OF CONTRACT

  	
  2

  
	
  ITEM DESCRIPTION

  	
  7

  
	
  ARTICLE ONE: BID
  EVALUATION AND CONTRACT AWARD

  	
  10

  
	
  Section 1 –
  Bid Evaluation

  	
  10

  
	
  Section 2 –
  Contract Award

  	
  10

  
	
  Section 3 –
  Post-Award Conference

  	
  10

  
	
  ARTICLE TWO:
  PARTIES TO THE CONTRACT

  	
  11

  
	
  Section 1 –
  Contractor Information

  	
  11

  
	
  Section 2 –
  Transfer and Hypothecation

  	
  11

  
	
  Section 3 –
  Contract of Sale

  	
  11

  
	
  Section 4 –
  Authority of Sales Contracting Officer (SCO

  	
  11

  
	
  ARTICLE THREE:
  CONTRACT FINANCIAL RETENTION

  	
  11

  
	
  Section 1 –
  Bid Deposit

  	
  11

  
	
  Section 2 –
  Payment Deposit

  	
  11

  
	
  Section 3 –
  Financial Guarantee Bond

  	
  12

  
	
  ARTICLE FOUR:
  CONTRACT PERFORMANCE

  	
  12

  
	
  Section 1 –
  Performance Period

  	
  12

  
	
  Section 2 –
  Phase-In Period

  	
  12

  
	
  Section 3 –
  Termination for Convenience of the Government

  	
  12

  
	
  ARTICLE FIVE: DISTRIBUTIONS
  TO DRMS

  	
  15

  
	
  Section 1 –
  Monthly Up-Front Property Purchase

  	
  15

  
	
  Section 2 –
  Monthly Back-End Property Payment

  	
  15

  
	
  Section 3 –
  Method of Payment

  	
  15

  
	
  Section 4 –
  Failure to Make Timely Payment

  	
  15

  
	
  ARTICLE SIX:
  PRODUCT POOL, PROPERTY REFERRALS AND TITLE TRANSFER

  	
  15

  
	
  Section 1 –
  Product Pool

  	
  15

  
	
  Section 2 –
  Property Referrals

  	
  16

  
	
  ARTICLE SEVEN:
  DEMILITARIZATION CODES AND TRADE SECURITY CONTROL (TSC) 

  	
   

  
	
  REQUIREMENTS

  	
  18

  
	
  Section 1 –
  Demilitarization Codes

  	
  18

  
	
  Section 2 –
  Contractor’s Trade Security Control Requirements

  	
  19

  
	
  Section 3 –
  Munitions List Items and Commerce Control List Items

  	
  19

  
	
  ARTICLE EIGHT:
  INVENTORY ASSURANCE

  	
  21

  



 


ii

















 


	
  Section 1 –
  Do-Not-Sell (DNS) List

  	
  21

  
	
  Section 2 –
  Demilitarization Code Change (DCC) List

  	
  21

  
	
  Section 3 –
  Property Assurance Contractor De-Incentives

  	
  21

  
	
  ARTICLE NINE:
  GOVERNMENT REQUIRED REPORTS

  	
  22

  
	
  Section 1 –
  Inventory Reports

  	
  22

  
	
  Section 2 –
  Resale and Returns Report

  	
  22

  
	
  Section 3 –
  Seller Indirect Cost (SIC) Report

  	
  22

  
	
  Section 4 –
  Small Business Participation Reports

  	
  22

  
	
  Section 5 –
  Non Responsive Resale Buyer Report

  	
  22

  
	
  Section 6 –
  Federal Asset Sales (FAS) Requirements

  	
  22

  
	
  ARTICLE TEN:
  PROPERTY STORAGE AND GOVERNMENT OWNED MATERIAL HANDLING 

  	
   

  
	
  EQUIPMENT (MHE)

  	
  23

  
	
  Section 1 –
  Property Storage on Government Facilities

  	
  23

  
	
  Section 2 –
  Property Storage on Government Facilities – Receipt In Place Property

  	
  23

  
	
  Section 3 –
  DRMS Infrastructure

  	
  24

  
	
  Section 4 –
  Government Owned Material Handling Equipment (MHE)

  	
  24

  
	
  ARTICLE ELEVEN:
  PROPERTY RETURNS

  	
  24

  
	
  Section 1 –
  Property Accountability of Items Issued to Contractor

  	
  24

  
	
  Section 2 –
  Line Item Discrepancies

  	
  24

  
	
  Section 3 –
  Property Retrieval of Controlled Items

  	
  24

  
	
  Section 4 –
  Reutilization/Transfer/Donation (RTD) Property Returns

  	
  25

  
	
  ARTICLE TWELVE:
  CONTRACT OPERATION REQUIREMENTS

  	
  25

  
	
  Section 1 –
  Contractor Participation in Federal Asset Sales

  	
  25

  
	
  Section 2 –
  Contractor Small Business Participation

  	
  25

  
	
  Section 3 –
  Contractor Awareness of the DRMS Environmental Management System (EMS)

  	
  26

  
	
  Section 4 –
  Inventory Assurance by Contractor

  	
  26

  
	
  Section 5 –
  Contractor Web Based Application

  	
  26

  
	
  Section 6 –
  Automatic Data Processing Equipment (ADPE) Certification by Contractor

  	
  27

  
	
  Section 7 –
  Food and Drug Administration (FDA) Certification for Medical Devices

  	
  27

  
	
  ARTICLE THIRTEEN:
  MATERIAL BREACH

  	
  28

  
	
  Section 1 –
  Notice of Material Breach

  	
  28

  
	
  Section 2 –
  Response to Notice -

  	
  28

  
	
  Section 3 –
  Termination

  	
  28

  
	
  Section 4 –
  Intentional Breach

  	
  28

  
	
  Section 5 –
  DRMS Remedies for Material Breach by Contractor

  	
  28

  
	
  Section 6 –
  Indemnification of DRMS by Contractor

  	
  28

  
	
  Section 7 –
  Indemnification of Contractor by DRMS

  	
  28

  
	
  ARTICLE FOURTEEN:
  CONTRACT SELLER INDIRECT COSTS

  	
  28

  



 


iii

















 


	
  Section 1 –
  Documentation and Payment of Seller Indirect Costs

  	
  28

  
	
  ARTICLE FIFTEEN:
  CONTRACT COMPLIANCE, AUDITS AND REVIEWS

  	
  29

  
	
  Section 1 –
  Compliance with Applicable Laws and Regulations

  	
  29

  
	
  Section 2 –
  Licenses and Permits

  	
  29

  
	
  Section 3 –
  Duties of Care and Loyalty

  	
  29

  
	
  Section 4 –
  Prohibited Activities

  	
  29

  
	
  Section 5 –
  Contractor Cooperation in DOD Investigations/Audits

  	
  29

  
	
  Section 6 –
  Contractor Record Retention

  	
  30

  
	
  Section 7 –
  Records Maintenance

  	
  30

  
	
  Section 8 –
  Inspection of Records and Workplace by Government

  	
  30

  
	
  Section 9 –
  Purpose and Content of Compliance Audits, Reviews and Further Reviews

  	
  30

  
	
  Section 10 –
  Methods and Procedures for Compliance Reviews

  	
  30

  
	
  Section 11 –
  Further Reviews

  	
  31

  
	
  Section 12 –
  Compliance Notification

  	
  31

  
	
  Section 13 –
  Costs of Oversight

  	
  31

  
	
  Section 14 –
  Notice of Audit Adjustment

  	
  31

  
	
  Section 15 –
  Procedures for Adjudication of Audit Adjustments

  	
  31

  
	
  Section 16 –
  Remedies for Audit Adjustments

  	
  31

  
	
  ARTICLE SIXTEEN:
  DISPUTES

  	
  32

  
	
  Section 1 –
  Disputes

  	
  32

  
	
  Section 2 –
  Claims

  	
  32

  
	
  Section 3 –
  Decisions

  	
  32

  
	
  Section 4 – Alternative
  Dispute Resolution (ADR)

  	
  32

  
	
  ARTICLE SEVENTEEN:
  INSURANCE AND BOND REQUIREMENTS

  	
  32

  
	
  Section 1 –
  Insurance and Bond Contract Requirements

  	
  32

  
	
  Section 2 –
  Modification of Special Circumstance Conditions

  	
  32

  
	
  Section 3 –
  Further Modifications

  	
  33

  
	
  Section 4 –
  Evidence of Insurance

  	
  33

  
	
  ARTICLE 18: DELETED
  IN ITS ENTIRETY

  	
  33

  
	
  ARTICLE NINETEEN:
  MISCELLANEOUS PROVISIONS

  	
  33

  
	
  Section 1 –
  Binding Effect

  	
  33

  
	
  Section 2 –
  Notices

  	
  33

  
	
  Section 3 –
  Severability

  	
  34

  
	
  Section 4 –
  Headings

  	
  34

  
	
  Section 5 –
  Survival

  	
  34

  
	
  Section 6 –
  Waiver

  	
  34

  
	
  Section 7 –
  Force Majeure

  	
  34

  
	
  Section 8 –
  Use of DRMS Name; Public Communications

  	
  34

  
	
  Section 9 –
  Tense and Gender

  	
  34

  
	
  Section 10 –
  Entire Agreement; Modification

  	
  35

  
	
  Section 11 –
  Computation of Time

  	
  35

  



 


iv

















 


	
  Section 12 –
  Electronic Communication

  	
  35

  
	
  ADDITIONAL TERMS
  AND CONDITIONS OF SALE

  	
  36

  
	
  ADDITIONAL CONTRACT
  ADVISEMENTS

  	
  37

  
	
  DEFINITIONS

  	
  40

  



 


v

















 


SURPLUS USEABLE PROPERTY


INVITATION FOR BID

Number
08-0001


 


STEP TWO OF TWO-STEP SEALED BID


 


This Invitation For Bid (IFB) is issued by the Defense Reutilization
and Marketing Service (DRMS) to initiate Step Two of a two-step sealed bid
sales process. The only bids the Sales Contracting Officer (SCO) may consider
for award of a contract are those received from bidders that have submitted
acceptable technical proposals during Step One of this solicitation under RFTP
08-0001.


 


The successful bidder’s technical proposal shall be incorporated into
any contract awarded in response to this IFB, thus any deviation from the
proposal will require a contract modification. In all other respects, the provisions of this IFB shall
govern the contract contemplated hereby without regard to assumptions, plans,
forecasts, conditions or any other matters set forth in any prospective bidder’s
technical proposal submitted in Step One.


 


Forms for submitting a bid are provided on the DRMS web site, www.drms.dla.mil,
then click on Sales Customer. Your Bid Forms and $100,000.00 bid deposit must
be delivered to and received by DRMS before the bid opening at 1:00 p.m.
EDST on Wednesday, June 11, 2008. Address your Bid Forms and Bid Deposit
to:


 


	
   

  	
  Mr. Neil Watters

  	
   

  
	
   

  	
  Sales Contracting Officer

  	
   

  
	
   

  	
  DRMS J-362

  	
   

  
	
   

  	
  74 North Washington Avenue

  	
   

  
	
   

  	
  Battle Creek, Michigan 49037-3092

  	
   

  
	
   

  	
  Fax: (269) 961-7568

  	
   

  



 


1

















 


GENERAL STATEMENTS OF CONTRACT


 


Certain contents and
provisions of this IFB, including Appendices, Attachments and Schedules, are
described in general. The following General Statements of Contract are not
intended to be complete and do not take precedence over the terms and
conditions of this contract. The requirements for all matters discussed in the
General Statements are fully defined in the Terms and Conditions Section of
this IFB. Any historical data provided in this IFB was derived using existing
sources and is presented for general reference only.


 


Prior to prospective bidders submitting a bid for this IFB, DRMS will
offer a tour of a DRMO facility and a pre-proposal conference where a contract
overview will be presented and an opportunity for prospective bidders to pose
questions. The tour and conference will take place on Wednesday, March 12,
2008 at 8:00AM at DRMO San Antonio, 2603 Parker Road, Building 4199, Fort Sam
Houston, TX. The purpose of the conference is to provide the Government an
opportunity to present solicitation terms and conditions, explain and provide
clarity to the Agency’s expectation in performance, and respond to questions
from prospective bidders. All questions and answers provided at the tour and
pre-proposal conference will be posted to the DRMS website, www.drms.dla.mil,
for viewing.


 


Prospective bidders are encouraged to attend the site visit
tour/pre-proposal conference on March 12, 2008. The point of contact for
the scheduled site visit tour/pre-proposal conference is Ms. Becky
Bellinger, Sales Contracting Officer. She can be reached via telephone at (269)
961-7079 or electronically, becky.bellinger@dla.mil. Prospective bidders are
asked to register for the conference with Ms. Bellinger no later than March 5,
2008 by electronically advising the name of the firm and the number of
attendees. Interested bidders are requested to submit any questions they may have
electronically to Ms. Bellinger no later than February 29, 2008. Such
questions shall be answered and made available to all interested parties at the
conference. Receipt of advance questions provides the Government adequate time
for proper response. Questions must be directed to the above email address.
Remarks and explanations provided at the conference shall not be considered to
supersede or otherwise qualify any of the terms of this solicitation unless
formally incorporated by amendment.


 


This IFB relates to useable property that the Government has determined
to be surplus to the needs of the Department of Defense and the Federal
Government. Useable property is defined with respect to a particular item, as a
designation assigned by or with the approval of DRMS personnel meaning that the
item has value in excess of that of the item’s material content. Normally, the
property will be comprised of items identified by the Government as safe to
sell and generally located in the Continental United States (CONUS) to include
Alaska, Hawaii, and Guam, however, the Government may include locations outside
CONUS at the agreement of both parties. Property issued under this contract
will predominately contain a demilitarization code of A, and may contain
demilitarization B and Q. In addition, DRMS may opt to include hazardous
material (under mutual agreement), such as lead acid batteries, paints,
sealants, and fuels; and certain demilitarization code F items where the


 


2

















 


demilitarization has been performed. NOTE:
Bidders are advised that national security decisions are currently pending that
could affect the sale of demilitarization code B and Q items. These items may
be removed from the product pool in the future.


 


DRMS receives property at DRMS facilities in CONUS, and one facility
each in Guam and Hawaii, and two in Alaska. DRMS may also receive generator
property that is not located at a DRMS facility, therefore, may refer for sale
to the Contractor at Receipt In Place (RIP) locations. Recycling Control Point
(RCP) DLA Depot property will be issued to the Contractor at one of the four
DRMS Controlled Property Centers (CPCs) currently located at Columbus, OH;
Norfolk, VA; Huntsville, AL; and Stockton, CA.


 


The successful bidder commits to purchase property issued under this
contract on a Delivery Order for a thirty-six (36) month performance period
commencing from the date of submission of the initial Delivery Order to the
Contractor. DRMS may unilaterally exercise options to extend the performance
period for up to an additional twenty-four (24) months via two twelve month
options, based on Government requirements.


 


A bid will consist of one bid percentage specified by the bidder for
the Government’s acquisition value of all property received. The winning bid
will be determined by the bidder submitting the highest bid percentage. The
successful bidder agrees to pay the Government the bid percentage submitted by
the bidder of the Government’s acquisition value for each line item issued each
month, referred to as the up-front payment. In addition, the Contractor must
pay DRMS an additional 1.0% of the Government’s acquisition value for property
within 120 days of appearing on a Delivery Order, referred to as the back-end
payment.


 


Within ten (10) days of contract award, the Contractor must pay
DRMS a payment deposit totaling five hundred thousand dollars ($500,000) (in
addition to the $100,000 bid deposit required at the time of bid submission).
The payment deposit will be held by DRMS until the conclusion of the contract
wind-down period. The Contractor is also required to provide a financial
guarantee bond in the amount of $4.5 million.


 


Prior to award of this contract, the Contractor will be required to
obtain a Trade Security Control clearance by providing the Trade Security
Control Office a properly completed End-Use Certificate (EUC) in the form of a
DLA Form 1822 (copy available on the DRMS web site, www.drms.dla.mil, then
click on Sales Customer. The clearance investigation determines that the entity
is who it claims to be, is doing business at the name and location claimed, and
that there are no disqualifying factors present (i.e., convictions for illegal
export of military technology, debarment by a Government activity, etc.).


 


All property that the Government issues under this contract requires
property assurance responsibilities on the part of the Contractor which may
result in the property being returned to the Government. DRMS will furnish the
Contractor a Do-Not-Sell (DNS) List (to include updates as often as necessary)
and a Demilitarization Code Change (DCC) List (also updated as often as
necessary) representing items that are or have become prohibited from sale.
Contractor will return any item on the DNS and DCC lists prior to release to
resale customers and shall identify the return by the applicable Delivery Order
and Disposal Turn-In Document (DTID). De-incentives will apply to the
Contractor


 


3

















 


with regard to the resale of items that DRMS has identified as becoming
controlled or DEMIL required and placed on the DNS or DCC List.


 


Certain property identified for return may have already been resold by
the Contractor and no longer in the Contractor’s possession. DRMS suggests the
Contractor advise resale buyers that due to national security, the Government
may ask for the return of property. Contractor will be required to inform their
customer of the property’s status and request that it be returned. Contractor
agrees to withhold further sales participation from customers who are
non-responsive or who refuse to return the property still within their
possession.


 


There may also be occasions when the Government will request the return
of property issued to the Contractor because it is required for DOD/DRMS
mission. DRMS does not anticipate a large volume of property will be requested
in this manner. DRMS will refund the Contractor’s purchase price for the return
of the items requested by DRMS and will advise Contractor of return process at
DRMS expense.


 


Contractor agrees to fully cooperate with the Government when informed
by DRMS of any reviews or investigations by any DOD or Federal Government
investigative service or agency. Contractor agrees to provide DRMS with all requested
information regarding the property or information relating to the customer
purchasing the property. Contractor must make all sales records, property, and
customer’s records pertaining to such investigations available to DRMS upon
request.


 


The Contractor may be asked to serve as a sales broker for DRMS from
time to time as DRMS may elect to refer certain non-DRMS assets to the
Contractor in support of the DRMS Sales program. Title to these items will
remain with the Government until sale to a resale buyer and removal of the
property from Government premises. DRMS will issue these items in-place and the
resale must also take place at the in-place location. Any inspection or sale of
this property must have prior approval of DRMS. Contractor will be required to
hold all item bid amounts separate from other funds.


 


In accordance with the June 4, 2001 memorandum from the Deputy
Secretary of Defense, certain security measures have been imposed when
disposing of Automatic Data Processing Equipment (ADPE). A copy of the specific
guidance is available on the DRMS web site, www.drms.dla.mil, then click on
Sales Customer. Therefore, specific verification/certification processes and
reporting requirements must be provided in the event the following FSCs are
issued to the Contractor:


 


7020 – ADP CENTRAL PROCESSING UNIT, ANALOG


7021 – ADP CENTRAL PROCESSING UNIT, DIGITAL


7022 – ADP CENTRAL PROCESSING UNIT, HYBRID


7025 – ADP INPUT/OUTPUT AND STORAGE DEVICES


 


DRMS will not provide the Contractor indoor or outdoor storage space
for the purposes of this contract, therefore, the Contractor is required to
obtain their own storage space. Temporary staging areas will be provided for
the Contractor to pack and sort property for shipping to Contractor’s storage
facilities. Property being stored by the Contractor must be safeguarded to the
satisfaction of the Government at all times. The Government reserves the right
to conduct “no-notice” site inspections as needed. Special circumstances may
arise where DRMS will allow the property to remain on a


 


4

















 


Government facility, however, expressed authorization from DRMS is
required. The Contractor will be charged storage charges for property not
removed from a Government facility in a timely manner. Government owned
Material Handling Equipment (MHE) will be made available to the Contractor at
the discretion of the Government.


 


The Contractor is required to participate in the Government’s Federal
Asset Sales (eFAS) Program whereby the Contractor agrees to integrate all sales
being conducted by the Contractor to the website, GovSales.gov, a Real and
Personal Property Portal that facilitates the sale for all Government Agencies.
Required quarterly reports reflecting Contractor sales performance must be
provided to the GSA GovSales Planning Office.


 


The Contractor must meet certain small business participation goals
when reselling the property issued under this contract. Required monthly
reports reflecting the participation must be provided to DRMS.


 


The contract requires that the Contractor fulfill certain requirements
related to national security, DRMS customer service, and compliance review. In
addition, the Contractor is fully auditable, therefore, will remain cooperative
with DRMS audit requirements to include accounting statements, insurance
coverage, inventory control and asset tracking procedures, inventory aging, and
returning/retrieving controlled/demilitarization items, both prior to resale
and after. Any and all of the Contractor’s records must be made available to
DRMS, to include providing DRMS copies and/or allowing DRMS to make copies of
all records requested. Records will be made available in either electronic or
hard copy form as required by DRMS. The contract also contains certain
provisions regarding the logistical interface with DRMS and its generators.


 


The Contractor must work effectively with DRMO personnel with respect
to logistics, and must interact with DRMS personnel with regard to national
security matters, customer service requests of DRMS, financial reporting,
compliance monitoring and dispute resolution.


 


The Government reserves the right to conduct a post-award conference as
early as two weeks after award. The purpose of the conference is to ensure the
Contractor fully understands the terms and conditions of this contract. The
location and date of the conference will be determined by DRMS and the costs
incurred by Contractor personnel attending shall be paid in full by the
Contractor without reimbursement by DRMS.


 


A prospective bidder should be aware of certain risk factors that could
affect a bidder’s assessment of this contract and the calculations supporting
the resulting bid. Although DRMS does not represent that it has identified all
such risk factors, the following, in addition to those risks identified
elsewhere in this IFB, should be considered by a prospective bidder:


 


The future volume, quality, condition, market value, types (i.e.,
distribution of property referrals across Federal Supply Classes (FSCs), and geographic
concentrations (i.e., referrals for sale at particular delivery points) of the
property cannot be predicted.


 


Described generally, applicable statutes and regulations grant DRMS
less flexibility to agree to amend a contract after award than prospective
bidders may have experienced in other


 


5

















 


contractual settings. Prospective bidders should assume that the
provisions of the contract cannot be significantly amended after award.


 


This IFB may be the subject of one or more protests to the U.S. General
Accountability Office. Moreover, it is possible that, either pending or after
award, one or more third parties that object to this contract could institute
litigation involving both DRMS and the Contractor. DRMS cannot predict the
likelihood or the possible grounds for such litigation. Nevertheless, this is a
risk factor that should be assessed by a prospective bidder.


 


Applicable statutes, regulations, policies and inter-service agreements
govern whether the disposition of particular items of surplus is through DRMS
or through other disposition modes. The volume and nature of the property
referred for sale under this contract could be affected by changes in such
governing statutes, regulations, policies and inter-service agreements.


 


REMAINDER OF PAGE INTENTIONALLY LEFT BLANK


 


6
















 


ITEM DESCRIPTION


 


It has been determined that after the DOD/DRMS Reutilization, Transfer,
or Donation process, the items within the property pool are no longer needed by
the Department of Defense or Federal Government and consist of:


 


ITEM 1: Useable property
normally comprised of items identified by the Government as safe to sell and
located in the Continental United States to include Alaska, Hawaii, and Guam,
however, at times, the Government may include locations outside of the
Continental United States at the agreement of both parties. Property issued
will predominately contain a demilitarization code of A and may include B, Q
and F. The Government may elect to offer property consisting of hazardous
material (under mutual agreement), such as lead acid batteries, paints,
sealants, and fuels; and certain demilitarization code F items where the
demilitarization has been performed. NOTE:
Bidders are advised that national security decisions are currently pending that
could impact the sale of demilitarization code B and Q items and, these items
could be removed from the product pool in the future.


 


Described very generally, a demilitarization code is a single alpha
character assigned by the item manager that identifies the degree of
demilitarization necessary prior to accomplishing final disposition of an item.
For the purposes of this IFB, the following definitions are provided:


 


DEMIL Code A – Demilitarization not required.


DEMIL Code B – Demilitarization not required, however Trade Security
Controls (as set forth by the Department of State) required at time of
disposition.


DEMIL Code Q – Demilitarization not required, however Trade Security
Controls (as set forth by the Department of Commerce) required at time of
disposition.


DEMIL Code F – Demilitarization instructions to be furnished by the
Item/Technical Manager/Equipment Specialist, however, Trade Security Controls
(as set forth by the Department of State) required at time of disposition.


 


The Government will decide items to be sold to the Contractor regardless
of Federal Supply Class (FSC), location, or demilitarization code.
Contractor has no right to any property that is not issued on a delivery order
under the terms of this contract. The Government guarantees to issue the
Contractor the lesser of either 130,000 line items of property annually or
issue to the Contractor, property with an annual acquisition value of
$600,000,000 under this contract. DRMS reserves the right to sell property or
offer property through alternative sales or contract means for all property not
considered part of this contract.


 


Each line item of property will be identified by either a National
Stock Number (NSN) or a Local Stock Number (LSN) provided by the generator —
usually a military base or other Department of Defense (DOD) facility. NSNs are
obtained from centralized federal procurement records. For items identified by
the generator by NSN, DRMS employs an automated system that matches the NSN to
the item’s acquisition value as recorded in these procurement records.


 


7

















 


Local Stock Numbers (LSNs) are assigned by personnel of the generator
for when the item’s NSN is unknown or unavailable. The acquisition value of an
item identified by LSN is determined by the generator and reported to DRMS on
the documentation associated with release of the item by the generator to DRMS.
LSN acquisition values are either the generator’s recorded original procurement
cost or its estimate of the item’s replacement cost. In some instances, DRMS receiving
personnel will correct the generator’s turn-in documentation by replacing an
LSN with an NSN. In such cases the item’s acquisition value is that
corresponding to the NSN rather than that originally reported by the generator.


 


The following data presented is a sample of the data DRMS is making
available to prospective bidders on the DRMS web site, www.drms.dla.mil, then
click on Sales Customer. The data provides a sales history to include returns
of FSCs, DEMIL Codes, line items, and acquisition values. Bidders are advised
that any sales history information is provided for informational purposes only.
Prior year property generations and sales data are not predictors of future
generations or sales.


 


This table represents a small
summary of property delivered on the current usable sales contract for FY05,
FY06, and FY07 and is sorted by which location it was delivered under.


 


NOTE: All property locations with type “RCP” will be
delivered to Stockton, Huntsville, Norfolk, or Columbus (OH).


 


	
   

  	
   

  	
   

  	
   

  	
  FY 2005 Delivered

  	
   

  	
  FY 2006 Delivered

  	
   

  	
  FY 2007 Delivered

  	
   

  
	
  DRMO

  	
   

  	
  DRMO Name

  	
   

  	
  Type

  	
   

  	
  L/I

  	
   

  	
  Qty

  	
   

  	
  AcqVal

  	
   

  	
  L/I

  	
   

  	
  Qty

  	
   

  	
  AcqVal

  	
   

  	
  L/I

  	
   

  	
  Qty

  	
   

  	
  AcqVal

  	
   

  
	
  SXVA

  	
   

  	
  Campbell

  	
   

  	
   

  	
   

  	
  7,744

  	
   

  	
  217,474

  	
   

  	
  $

  	
  33,584,956.39

  	
   

  	
  2,546

  	
   

  	
  101,560

  	
   

  	
  $

  	
  14,690,702.42

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  SYCA

  	
   

  	
  Colorado Springs

  	
   

  	
   

  	
   

  	
  7,819

  	
   

  	
  132,755

  	
   

  	
  $

  	
  42,227,296.29

  	
   

  	
  10,218

  	
   

  	
  146,117

  	
   

  	
  $

  	
  73,303,138.20

  	
   

  	
  6,211

  	
   

  	
  196,547

  	
   

  	
  $

  	
  35,973,397.59

  	
   

  
	
  SXGF

  	
   

  	
  Eglin

  	
   

  	
   

  	
   

  	
  18,933

  	
   

  	
  143,373

  	
   

  	
  $

  	
  72,470,358.88

  	
   

  	
  18,933

  	
   

  	
  116,430

  	
   

  	
  $

  	
  71,801,958.59

  	
   

  	
  579

  	
   

  	
  9,543

  	
   

  	
  $

  	
  21,977,697.53

  	
   

  
	
  SSBA

  	
   

  	
  Guam

  	
   

  	
   

  	
   

  	
  9,876

  	
   

  	
  197,388

  	
   

  	
  $

  	
  14,787,809.05

  	
   

  	
  12,990

  	
   

  	
  182,209

  	
   

  	
  $

  	
  8,696,234.61

  	
   

  	
  9,364

  	
   

  	
  115,861

  	
   

  	
  $

  	
  18,403,040.46

  	
   

  
	
  SSAA

  	
   

  	
  Hawaii

  	
   

  	
  MEO

  	
   

  	
  23,372

  	
   

  	
  503,431

  	
   

  	
  $

  	
  52,365,667.99

  	
   

  	
  14,341

  	
   

  	
  310,860

  	
   

  	
  $

  	
  40,411,920.36

  	
   

  	
  12,550

  	
   

  	
  212,914

  	
   

  	
  $

  	
  39,495,988.47

  	
   

  
	
  SYBA

  	
   

  	
  Hill

  	
   

  	
  MEO

  	
   

  	
  12,540

  	
   

  	
  705,406

  	
   

  	
  $

  	
  87,983,465.66

  	
   

  	
  13,031

  	
   

  	
  428,031

  	
   

  	
  $

  	
  83,526,757.07

  	
   

  	
  9,890

  	
   

  	
  350,532

  	
   

  	
  $

  	
  100,472,761.43

  	
   

  
	
  SZ7A

  	
   

  	
  Hood

  	
   

  	
   

  	
   

  	
  8,959

  	
   

  	
  198,520

  	
   

  	
  $

  	
  52,984,395.13

  	
   

  	
  2,070

  	
   

  	
  59,166

  	
   

  	
  $

  	
  12,296,323.74

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  S9WB

  	
   

  	
  Jacksonville

  	
   

  	
  RCP

  	
   

  	
  10,439

  	
   

  	
  343,909

  	
   

  	
  $

  	
  151,745,089.87

  	
   

  	
  2,060

  	
   

  	
  48,876

  	
   

  	
  $

  	
  102,543,687.17

  	
   

  	
  2,107

  	
   

  	
  50,798

  	
   

  	
  $

  	
  62,798,469.16

  	
   

  
	
  SXGA

  	
   

  	
  Jacksonville

  	
   

  	
   

  	
   

  	
  13,835

  	
   

  	
  648,304

  	
   

  	
  $

  	
  124,826,838.49

  	
   

  	
  10,396

  	
   

  	
  657,454

  	
   

  	
  $

  	
  62,798,477.30

  	
   

  	
  3

  	
   

  	
  5

  	
   

  	
  $

  	
  153,071.00

  	
   

  
	
  SZPA

  	
   

  	
  Lewis

  	
   

  	
  MEO

  	
   

  	
  18,181

  	
   

  	
  1,370,420

  	
   

  	
  $

  	
  92,132,956.50

  	
   

  	
  15,654

  	
   

  	
  670,231

  	
   

  	
  $

  	
  84,486,254.06

  	
   

  	
  14,367

  	
   

  	
  554,945

  	
   

  	
  $

  	
  78,354,926.17

  	
   

  
	
  STWA

  	
   

  	
  Meade

  	
   

  	
   

  	
   

  	
  24,757

  	
   

  	
  207,535

  	
   

  	
  $

  	
  113,620,186.33

  	
   

  	
  9,522

  	
   

  	
  116,818

  	
   

  	
  $

  	
  41,773,904.44

  	
   

  	
  3,295

  	
   

  	
  40,422

  	
   

  	
  $

  	
  30,261,117.10

  	
   

  
	
  SVEA

  	
   

  	
  Mechanicsburg

  	
   

  	
  MEO

  	
   

  	
  12,842

  	
   

  	
  837,044

  	
   

  	
  $

  	
  81,508,603.06

  	
   

  	
  20,544

  	
   

  	
  1,781,444

  	
   

  	
  $

  	
  153,129,072.32

  	
   

  	
  23,550

  	
   

  	
  1,330,375

  	
   

  	
  $

  	
  148,373,295.84

  	
   

  
	
  S9WN

  	
   

  	
  New Cumberland

  	
   

  	
  RCP

  	
   

  	
  9,605

  	
   

  	
  1,070,357

  	
   

  	
  $

  	
  49,428,304.35

  	
   

  	
  7,082

  	
   

  	
  1,404,906

  	
   

  	
  $

  	
  44,811,729.53

  	
   

  	
  9,036

  	
   

  	
  3,299,948

  	
   

  	
  $

  	
  47,608,487.88

  	
   

  
	
  S9WE

  	
   

  	
  Norfolk

  	
   

  	
  RCP

  	
   

  	
  13,971

  	
   

  	
  263,294

  	
   

  	
  $

  	
  106,257,232.21

  	
   

  	
  6,579

  	
   

  	
  117,782

  	
   

  	
  $

  	
  176,642,939.04

  	
   

  	
  8,003

  	
   

  	
  205,125

  	
   

  	
  $

  	
  91,182,683.61

  	
   

  
	
  ST1A

  	
   

  	
  Norfolk

  	
   

  	
  MEO

  	
   

  	
  21,116

  	
   

  	
  607,668

  	
   

  	
  $

  	
  97,353,909.64

  	
   

  	
  18,667

  	
   

  	
  322,420

  	
   

  	
  $

  	
  62,765,841.09

  	
   

  	
  14,196

  	
   

  	
  369,968

  	
   

  	
  $

  	
  77,145,536.28

  	
   

  
	
  SY6P

  	
   

  	
  Polk

  	
   

  	
   

  	
   

  	
  8,011

  	
   

  	
  138,933

  	
   

  	
  $

  	
  29,154,974.18

  	
   

  	
  4,734

  	
   

  	
  86,047

  	
   

  	
  $

  	
  16,785,546.44

  	
   

  	
  168

  	
   

  	
  172

  	
   

  	
  $

  	
  5,313,950.00

  	
   

  
	
  S9WP

  	
   

  	
  Richmond

  	
   

  	
  RCP

  	
   

  	
  7,672

  	
   

  	
  303,199

  	
   

  	
  $

  	
  16,486,710.45

  	
   

  	
  6,166

  	
   

  	
  1,049,969

  	
   

  	
  $

  	
  11,048,449.13

  	
   

  	
  16,547

  	
   

  	
  1,745,529

  	
   

  	
  $

  	
  18,026,442.97

  	
   

  
	
  ST4A

  	
   

  	
  Richmond

  	
   

  	
   

  	
   

  	
  13,234

  	
   

  	
  243,249

  	
   

  	
  $

  	
  75,574,941.83

  	
   

  	
  13,251

  	
   

  	
  166,226

  	
   

  	
  $

  	
  68,969,798.93

  	
   

  	
  2,039

  	
   

  	
  40,449

  	
   

  	
  $

  	
  8,741,116.64

  	
   

  
	
  SY4A

  	
   

  	
  Riley

  	
   

  	
  MEO

  	
   

  	
  11,081

  	
   

  	
  520,339

  	
   

  	
  $

  	
  50,878,983.65

  	
   

  	
  7,346

  	
   

  	
  380,743

  	
   

  	
  $

  	
  33,313,744.90

  	
   

  	
  5,422

  	
   

  	
  289,687

  	
   

  	
  $

  	
  48,827,806.80

  	
   

  
	
  SY6A

  	
   

  	
  San Antonio

  	
   

  	
   

  	
   

  	
  9,655

  	
   

  	
  138,834

  	
   

  	
  $

  	
  58,226,974.63

  	
   

  	
  1,413

  	
   

  	
  17,793

  	
   

  	
  $

  	
  16,677,753.32

  	
   

  	
  3,206

  	
   

  	
  93,163

  	
   

  	
  $

  	
  22,622,943.49

  	
   

  
	
  S9WA

  	
   

  	
  San Diego

  	
   

  	
  RCP

  	
   

  	
  10,302

  	
   

  	
  235,923

  	
   

  	
  $

  	
  160,965,273.58

  	
   

  	
  21,596

  	
   

  	
  293,304

  	
   

  	
  $

  	
  225,506,129.62

  	
   

  	
  5,225

  	
   

  	
  102,658

  	
   

  	
  $

  	
  133,748,511.91

  	
   

  
	
  SYUA

  	
   

  	
  San Diego

  	
   

  	
   

  	
   

  	
  11,755

  	
   

  	
  328,958

  	
   

  	
  $

  	
  62,959,482.55

  	
   

  	
  2,244

  	
   

  	
  212,263

  	
   

  	
  $

  	
  21,201,602.81

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  S9WS

  	
   

  	
  Sharpe

  	
   

  	
  RCP

  	
   

  	
  13,513

  	
   

  	
  918,761

  	
   

  	
  $

  	
  30,404,039.44

  	
   

  	
  7,627

  	
   

  	
  1,247,406

  	
   

  	
  $

  	
  30,324,432.27

  	
   

  	
  19,091

  	
   

  	
  3,075,977

  	
   

  	
  $

  	
  46,870,365.59

  	
   

  
	
  ST1J

  	
   

  	
  St Juliens

  	
   

  	
   

  	
   

  	
  18,436

  	
   

  	
  708,583

  	
   

  	
  $

  	
  120,228,320.67

  	
   

  	
  11,405

  	
   

  	
  497,184

  	
   

  	
  $

  	
  103,746,449.56

  	
   

  	
  1,309

  	
   

  	
  59,435

  	
   

  	
  $

  	
  25,227,542.07

  	
   

  
	
  SVXP

  	
   

  	
  Wright-Patterson

  	
   

  	
   

  	
   

  	
  10,476

  	
   

  	
  197,171

  	
   

  	
  $

  	
  43,565,081.43

  	
   

  	
  16,470

  	
   

  	
  61,994

  	
   

  	
  $

  	
  36,305,575.09

  	
   

  	
  71

  	
   

  	
  2,021

  	
   

  	
  $

  	
  198,350.00

  	
   

  



 


8

















 


This table represents a small summary of property that has
been delivered under the current DRMS usable sales contract for FY05, FY06, and
FY07. This data has been sorted by the Federal Stock Class and is accurate
to the best of the Governments knowledge. The data does not represent property
that will be delivered under the future contract.


 


	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  FY 2005 Delivered

  	
   

  	
  FY 2006 Delivered

  	
   

  	
  FY 2007 Delivered

  	
   

  
	
  FSC

  	
   

  	
  Description

  	
   

  	
  Demil

  	
   

  	
  L/I

  	
   

  	
  Qty

  	
   

  	
  AcqVal

  	
   

  	
  L/I

  	
   

  	
  Qty

  	
   

  	
  AcqVal

  	
   

  	
  L/I

  	
   

  	
  Qty

  	
   

  	
  AcqVal

  	
   

  
	
  1560

  	
   

  	
  Airframe Structural Comp

  	
   

  	
  B

  	
   

  	
  10,389

  	
   

  	
  183,364

  	
   

  	
  $

  	
  76,511,964.71

  	
   

  	
  6,884

  	
   

  	
  71,826

  	
   

  	
  $

  	
  50,821,551.60

  	
   

  	
  6,876

  	
   

  	
  81,464

  	
   

  	
  $

  	
  55,946,405.06

  	
   

  
	
  4730

  	
   

  	
  Fittings And Specialties; H

  	
   

  	
  A

  	
   

  	
  6,042

  	
   

  	
  167,678

  	
   

  	
  $

  	
  9,516,140.89

  	
   

  	
  5,126

  	
   

  	
  217,895

  	
   

  	
  $

  	
  7,975,711.62

  	
   

  	
  5,623

  	
   

  	
  293,720

  	
   

  	
  $

  	
  10,455,261.69

  	
   

  
	
  4820

  	
   

  	
  Valves, Nonpowered

  	
   

  	
  A

  	
   

  	
  3,706

  	
   

  	
  25,874

  	
   

  	
  $

  	
  18,456,904.13

  	
   

  	
  3,505

  	
   

  	
  22,354

  	
   

  	
  $

  	
  21,123,964.08

  	
   

  	
  4,710

  	
   

  	
  83,567

  	
   

  	
  $

  	
  21,228,599.09

  	
   

  
	
  4920

  	
   

  	
  Aircraft Maintenance And

  	
   

  	
  A

  	
   

  	
  3,659

  	
   

  	
  9,700

  	
   

  	
  $

  	
  74,185,735.40

  	
   

  	
  3,102

  	
   

  	
  8,944

  	
   

  	
  $

  	
  72,098,799.01

  	
   

  	
  1,671

  	
   

  	
  4,705

  	
   

  	
  $

  	
  40,140,160.91

  	
   

  
	
  5330

  	
   

  	
  Packing And Gasket Mate

  	
   

  	
  A

  	
   

  	
  3,176

  	
   

  	
  206,832

  	
   

  	
  $

  	
  6,609,663.04

  	
   

  	
  2,979

  	
   

  	
  265,893

  	
   

  	
  $

  	
  6,098,077.83

  	
   

  	
  3,274

  	
   

  	
  254,309

  	
   

  	
  $

  	
  12,871,230.58

  	
   

  
	
  5340

  	
   

  	
  Miscellaneous Hardware

  	
   

  	
  A

  	
   

  	
  3,473

  	
   

  	
  334,634

  	
   

  	
  $

  	
  10,101,626.39

  	
   

  	
  3,596

  	
   

  	
  194,703

  	
   

  	
  $

  	
  7,714,965.80

  	
   

  	
  3,750

  	
   

  	
  637,229

  	
   

  	
  $

  	
  7,908,276.02

  	
   

  
	
  5935

  	
   

  	
  Connectors, Electrical

  	
   

  	
  A

  	
   

  	
  9,255

  	
   

  	
  1,193,936

  	
   

  	
  $

  	
  11,099,078.20

  	
   

  	
  8,671

  	
   

  	
  263,432

  	
   

  	
  $

  	
  9,233,783.80

  	
   

  	
  13,634

  	
   

  	
  574,463

  	
   

  	
  $

  	
  12,231,384.85

  	
   

  
	
  6130

  	
   

  	
  Converters, Electrical, No

  	
   

  	
  A

  	
   

  	
  5,104

  	
   

  	
  22,180

  	
   

  	
  $

  	
  35,616,604.86

  	
   

  	
  4,097

  	
   

  	
  16,500

  	
   

  	
  $

  	
  27,878,903.58

  	
   

  	
  1,596

  	
   

  	
  10,217

  	
   

  	
  $

  	
  21,515,077.05

  	
   

  
	
  6130

  	
   

  	
  Converters, Electrical, No

  	
   

  	
  B

  	
   

  	
  4,181

  	
   

  	
  15,803

  	
   

  	
  $

  	
  154,857,908.00

  	
   

  	
  3,561

  	
   

  	
  14,418

  	
   

  	
  $

  	
  160,576,597.11

  	
   

  	
  3,204

  	
   

  	
  13,242

  	
   

  	
  $

  	
  114,275,938.83

  	
   

  
	
  6515

  	
   

  	
  Medical And Surgical Inst

  	
   

  	
  A

  	
   

  	
  8,385

  	
   

  	
  94,360

  	
   

  	
  $

  	
  50,308,253.84

  	
   

  	
  7,997

  	
   

  	
  123,126

  	
   

  	
  $

  	
  43,892,546.16

  	
   

  	
  8,113

  	
   

  	
  156,694

  	
   

  	
  $

  	
  44,469,384.16

  	
   

  
	
  6530

  	
   

  	
  Hospital Furniture, Equip

  	
   

  	
  A

  	
   

  	
  2,965

  	
   

  	
  22,114

  	
   

  	
  $

  	
  16,818,053.51

  	
   

  	
  2,931

  	
   

  	
  66,895

  	
   

  	
  $

  	
  20,070,481.45

  	
   

  	
  4,013

  	
   

  	
  76,701

  	
   

  	
  $

  	
  24,831,706.88

  	
   

  
	
  6625

  	
   

  	
  Electrical/Electronic Prop

  	
   

  	
  A

  	
   

  	
  21,251

  	
   

  	
  53,794

  	
   

  	
  $

  	
  203,791,818.53

  	
   

  	
  15,285

  	
   

  	
  43,640

  	
   

  	
  $

  	
  181,157,292.48

  	
   

  	
  5,614

  	
   

  	
  20,896

  	
   

  	
  $

  	
  50,697,502.89

  	
   

  
	
  7025

  	
   

  	
  Adp Input/Output And Sto

  	
   

  	
  A

  	
   

  	
  81,643

  	
   

  	
  1,052,779

  	
   

  	
  $

  	
  263,753,583.12

  	
   

  	
  53,564

  	
   

  	
  440,918

  	
   

  	
  $

  	
  179,275,260.49

  	
   

  	
  6,106

  	
   

  	
  45,563

  	
   

  	
  $

  	
  20,259,664.11

  	
   

  
	
  8415

  	
   

  	
  Clothing, Special Purpose

  	
   

  	
  A

  	
   

  	
  23,122

  	
   

  	
  1,162,838

  	
   

  	
  $

  	
  46,322,518.31

  	
   

  	
  12,515

  	
   

  	
  702,725

  	
   

  	
  $

  	
  28,416,914.59

  	
   

  	
  7,241

  	
   

  	
  545,483

  	
   

  	
  $

  	
  23,131,403.61

  	
   

  
	
  8465

  	
   

  	
  Individual Equipment

  	
   

  	
  A

  	
   

  	
  9,226

  	
   

  	
  871,049

  	
   

  	
  $

  	
  22,958,485.04

  	
   

  	
  8,608

  	
   

  	
  952,941

  	
   

  	
  $

  	
  18,387,137.37

  	
   

  	
  7,793

  	
   

  	
  1,185,435

  	
   

  	
  $

  	
  19,805,298.47

  	
   

  



 


This data represents a small summary of returns from the
current DRMS usable sales contract and is sorted by FSC showing the workload,
quantity, and acquisition value of the property that has been returned. Policy
changes could influence the volume of returns in the future.


 


	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  FY 2005 Returned

  	
   

  	
  FY 2006 Returned

  	
   

  	
  FY 2007 Returned

  	
   

  
	
  FSC

  	
   

  	
  Description

  	
   

  	
  Demil

  	
   

  	
  L/I

  	
   

  	
  Qty

  	
   

  	
  AcqVal

  	
   

  	
  L/I

  	
   

  	
  Qty

  	
   

  	
  AcqVal

  	
   

  	
  L/I

  	
   

  	
  Qty

  	
   

  	
  AcqVal

  	
   

  
	
  1560

  	
   

  	
  Airframe Structural Com

  	
   

  	
  B

  	
   

  	
  126

  	
   

  	
  15,976

  	
   

  	
  $

  	
  (15,287,353.61

  	
  )

  	
  214

  	
   

  	
  2,093

  	
   

  	
  $

  	
  (3,570,133.71

  	
  )

  	
  241

  	
   

  	
  2,183

  	
   

  	
  $

  	
  (5,475,778.13

  	
  )

  
	
  4730

  	
   

  	
  Fittings And Specialties;

  	
   

  	
  A

  	
   

  	
  49

  	
   

  	
  4,844

  	
   

  	
  $

  	
  (281,839.85

  	
  )

  	
  85

  	
   

  	
  4,664

  	
   

  	
  $

  	
  (217,324.63

  	
  )

  	
  81

  	
   

  	
  4,973

  	
   

  	
  $

  	
  (207,930.41

  	
  )

  
	
  4920

  	
   

  	
  Aircraft Maintenance An

  	
   

  	
  A

  	
   

  	
  56

  	
   

  	
  140

  	
   

  	
  $

  	
  (4,504,180.22

  	
  )

  	
  92

  	
   

  	
  245

  	
   

  	
  $

  	
  (12,814,733.01

  	
  )

  	
  48

  	
   

  	
  81

  	
   

  	
  $

  	
  (1,995,431.93

  	
  )

  
	
  4935

  	
   

  	
  Guided Missile Maintena

  	
   

  	
  B

  	
   

  	
  14

  	
   

  	
  29

  	
   

  	
  $

  	
  (4,328,967.08

  	
  )

  	
  65

  	
   

  	
  298

  	
   

  	
  $

  	
  (4,377,122.81

  	
  )

  	
  16

  	
   

  	
  57

  	
   

  	
  $

  	
  (763,193.58

  	
  )

  
	
  5820

  	
   

  	
  Radio And Television Co

  	
   

  	
  A

  	
   

  	
  56

  	
   

  	
  243

  	
   

  	
  $

  	
  (491,664.46

  	
  )

  	
  69

  	
   

  	
  215

  	
   

  	
  $

  	
  (706,925.15

  	
  )

  	
  23

  	
   

  	
  73

  	
   

  	
  $

  	
  (245,737.53

  	
  )

  
	
  5895

  	
   

  	
  Miscellaneous Communi

  	
   

  	
  A

  	
   

  	
  69

  	
   

  	
  519

  	
   

  	
  $

  	
  (49,437,435.65

  	
  )

  	
  101

  	
   

  	
  835

  	
   

  	
  $

  	
  (7,724,516.88

  	
  )

  	
  99

  	
   

  	
  1,262

  	
   

  	
  $

  	
  (1,649,898.36

  	
  )

  
	
  5895

  	
   

  	
  Miscellaneous Communi

  	
   

  	
  B

  	
   

  	
  54

  	
   

  	
  435

  	
   

  	
  $

  	
  (33,573,914.45

  	
  )

  	
  113

  	
   

  	
  715

  	
   

  	
  $

  	
  (12,742,636.29

  	
  )

  	
  52

  	
   

  	
  631

  	
   

  	
  $

  	
  (12,179,780.58

  	
  )

  
	
  5935

  	
   

  	
  Connectors, Electrical

  	
   

  	
  A

  	
   

  	
  163

  	
   

  	
  2,092

  	
   

  	
  $

  	
  (111,531.07

  	
  )

  	
  178

  	
   

  	
  2,210

  	
   

  	
  $

  	
  (233,805.43

  	
  )

  	
  257

  	
   

  	
  9,966

  	
   

  	
  $

  	
  (659,890.64

  	
  )

  
	
  5985

  	
   

  	
  Antennas,Waveguide A

  	
   

  	
  B

  	
   

  	
  32

  	
   

  	
  97

  	
   

  	
  $

  	
  (292,730.96

  	
  )

  	
  73

  	
   

  	
  324

  	
   

  	
  $

  	
  (831,857.83

  	
  )

  	
  69

  	
   

  	
  408

  	
   

  	
  $

  	
  (2,486,453.81

  	
  )

  
	
  5999

  	
   

  	
  Miscellaneous Electrical

  	
   

  	
  A

  	
   

  	
  47

  	
   

  	
  634

  	
   

  	
  $

  	
  (110,073.27

  	
  )

  	
  79

  	
   

  	
  5,456

  	
   

  	
  $

  	
  (83,253.80

  	
  )

  	
  66

  	
   

  	
  3,176

  	
   

  	
  $

  	
  (60,582.04

  	
  )

  
	
  6130

  	
   

  	
  Converters, Electrical, N

  	
   

  	
  A

  	
   

  	
  67

  	
   

  	
  292

  	
   

  	
  $

  	
  (98,217.19

  	
  )

  	
  67

  	
   

  	
  513

  	
   

  	
  $

  	
  (269,250.78

  	
  )

  	
  33

  	
   

  	
  295

  	
   

  	
  $

  	
  (469,085.60

  	
  )

  
	
  6515

  	
   

  	
  Medical And Surgical Ins

  	
   

  	
  A

  	
   

  	
  86

  	
   

  	
  887

  	
   

  	
  $

  	
  (3,047,682.29

  	
  )

  	
  89

  	
   

  	
  741

  	
   

  	
  $

  	
  (660,954.53

  	
  )

  	
  303

  	
   

  	
  1,547

  	
   

  	
  $

  	
  (2,705,293.32

  	
  )

  
	
  6530

  	
   

  	
  Hospital Furniture, Equip

  	
   

  	
  A

  	
   

  	
  52

  	
   

  	
  356

  	
   

  	
  $

  	
  (277,396.22

  	
  )

  	
  62

  	
   

  	
  1,178

  	
   

  	
  $

  	
  (417,239.47

  	
  )

  	
  133

  	
   

  	
  4,260

  	
   

  	
  $

  	
  (1,382,469.10

  	
  )

  
	
  6625

  	
   

  	
  Electrical/Electronic Prop

  	
   

  	
  A

  	
   

  	
  167

  	
   

  	
  920

  	
   

  	
  $

  	
  (13,516,894.25

  	
  )

  	
  291

  	
   

  	
  1,126

  	
   

  	
  $

  	
  (37,057,030.53

  	
  )

  	
  379

  	
   

  	
  657

  	
   

  	
  $

  	
  (4,945,626.82

  	
  )

  
	
  6625

  	
   

  	
  Electrical/Electronic Prop

  	
   

  	
  B

  	
   

  	
  60

  	
   

  	
  186

  	
   

  	
  $

  	
  (2,010,944.47

  	
  )

  	
  116

  	
   

  	
  316

  	
   

  	
  $

  	
  (5,961,159.08

  	
  )

  	
  126

  	
   

  	
  196

  	
   

  	
  $

  	
  (2,905,457.57

  	
  )

  
	
  7010

  	
   

  	
  Adpe Configuration

  	
   

  	
  A

  	
   

  	
  101

  	
   

  	
  211

  	
   

  	
  $

  	
  (696,770.01

  	
  )

  	
  81

  	
   

  	
  303

  	
   

  	
  $

  	
  (13,132,046.08

  	
  )

  	
  12

  	
   

  	
  81

  	
   

  	
  $

  	
  (43,264.27

  	
  )

  
	
  7021

  	
   

  	
  Adp Central Processing

  	
   

  	
  A

  	
   

  	
  169

  	
   

  	
  582

  	
   

  	
  $

  	
  (1,484,276.68

  	
  )

  	
  265

  	
   

  	
  1,172

  	
   

  	
  $

  	
  (29,258,378.95

  	
  )

  	
  27

  	
   

  	
  310

  	
   

  	
  $

  	
  (467,667.78

  	
  )

  
	
  7025

  	
   

  	
  Adp Input/Output And St

  	
   

  	
  A

  	
   

  	
  547

  	
   

  	
  4,432

  	
   

  	
  $

  	
  (4,587,201.71

  	
  )

  	
  711

  	
   

  	
  19,604

  	
   

  	
  $

  	
  (18,735,265.87

  	
  )

  	
  363

  	
   

  	
  5,124

  	
   

  	
  $

  	
  (1,806,962.74

  	
  )

  
	
  7050

  	
   

  	
  Adp Components

  	
   

  	
  A

  	
   

  	
  8

  	
   

  	
  47

  	
   

  	
  $

  	
  (107,060.36

  	
  )

  	
  64

  	
   

  	
  713

  	
   

  	
  $

  	
  (147,613.65

  	
  )

  	
  22

  	
   

  	
  212

  	
   

  	
  $

  	
  (415,280.93

  	
  )

  
	
  7105

  	
   

  	
  Household Furniture

  	
   

  	
  A

  	
   

  	
  165

  	
   

  	
  2,048

  	
   

  	
  $

  	
  (250,012.90

  	
  )

  	
  114

  	
   

  	
  2,452

  	
   

  	
  $

  	
  (436,886.37

  	
  )

  	
  50

  	
   

  	
  3,073

  	
   

  	
  $

  	
  (494,517.85

  	
  )

  
	
  7110

  	
   

  	
  Office Furniture

  	
   

  	
  A

  	
   

  	
  423

  	
   

  	
  4,248

  	
   

  	
  $

  	
  (470,169.47

  	
  )

  	
  408

  	
   

  	
  2,979

  	
   

  	
  $

  	
  (319,841.31

  	
  )

  	
  243

  	
   

  	
  2,393

  	
   

  	
  $

  	
  (271,271.20

  	
  )

  
	
  7125

  	
   

  	
  Cabinets, Lockers, Bins

  	
   

  	
  A

  	
   

  	
  62

  	
   

  	
  386

  	
   

  	
  $

  	
  (94,724.64

  	
  )

  	
  64

  	
   

  	
  331

  	
   

  	
  $

  	
  (37,902.90

  	
  )

  	
  37

  	
   

  	
  369

  	
   

  	
  $

  	
  (38,611.00

  	
  )

  
	
  8405

  	
   

  	
  Outerwear, Men’s

  	
   

  	
  A

  	
   

  	
  50

  	
   

  	
  2,701

  	
   

  	
  $

  	
  (104,198.20

  	
  )

  	
  78

  	
   

  	
  11,495

  	
   

  	
  $

  	
  (159,570.35

  	
  )

  	
  278

  	
   

  	
  17,345

  	
   

  	
  $

  	
  (648,483.58

  	
  )

  
	
  8415

  	
   

  	
  Clothing, Special Purpos

  	
   

  	
  A

  	
   

  	
  222

  	
   

  	
  23,443

  	
   

  	
  $

  	
  (981,049.74

  	
  )

  	
  597

  	
   

  	
  26,642

  	
   

  	
  $

  	
  (1,403,452.58

  	
  )

  	
  1,017

  	
   

  	
  58,845

  	
   

  	
  $

  	
  (2,843,645.80

  	
  )

  
	
  8465

  	
   

  	
  Individual Equipment

  	
   

  	
  A

  	
   

  	
  189

  	
   

  	
  21,353

  	
   

  	
  $

  	
  (263,125.92

  	
  )

  	
  205

  	
   

  	
  15,809

  	
   

  	
  $

  	
  (373,992.95

  	
  )

  	
  289

  	
   

  	
  38,217

  	
   

  	
  $

  	
  (708,154.14

  	
  )

  



 


THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT
BLANK


 


9

















 


ADDITIONAL TERMS AND CONDITIONS OF SALE


 


The following Articles (not part of the Sale
By Reference (SBR)) apply and constitute terms and conditions of this sale:


 


ARTICLE ONE: Bid Evaluation and Contract Award


 


Section 1 – Bid Evaluation -
Award will be made to the responsive, responsible bidder that has submitted the
highest bid price consisting of one bid percentage specified by the bidder. The
bid must be expressed as a percentage of the acquisition value of the property
delivered under this contract and must exceed zero, and only four (4) digits
to the right of the decimal without rounding. The winning bid will be
determined by the bidder submitting the highest bid percentage. After the
contract is awarded, the Contractor’s upfront purchase price for property will
be determined by multiplying the applicable bid percentage by the item’s
acquisition value. The Government reserves the right to not award a contract if
such contract is deemed not to be in the Government’s best interest. Further,
the Government may also reject any bid if DRMS determines that accepting such
bid would not be in the Government’s best interest.


 


Section 2 – Contract Award
– At the time of bid opening, the SCO will determine if each bid is responsive,
prior to award of the contract. The contract will be awarded to the highest
responsive bidder. In the event of a termination of the original Contractor
within sixty (60) days of the date of award, the SCO may award the contract to
the next highest responsive bidder determined by the SCO if bids have not
expired, and such award is otherwise determined to be in the Government’s best
interest, price and other factors considered.


 


Section 3 – Post-Award Conference
- The Government reserves the right to
conduct a post-award conference as early as two weeks after award. The purpose
of the conference is to ensure the Contractor fully understands the terms and
conditions of this contract. The location and date of the conference will be
determined by DRMS and the costs incurred by Contractor personnel attending
shall be paid in full by the Contractor.


 


Section 4 – Pre-Award Survey -
After solicitation opening/closing and prior to award, the Government may
conduct a Pre-Award survey of one or more offerors who may become eligible for
award after final evaluation. Offerors must cooperate in the Pre-Award process
by assisting in arrangements or by providing requested information in a timely
manner. The Pre-Award survey may be conducted at the Contractor’s facility(ies)
or other location(s) as deemed necessary by the Government and may include
a review of Contractor’s facilities and equipment, financial capability or
disclosure of a Contractor’s financial condition, quality assurance, safety,
and transportation. The Pre-Award survey is one of the factors used by the
Government to determine the Contractor’s ability to satisfactorily perform the
work set forth in this solicitation. Offerors are advised that accomplishment
of a Pre-Award survey or furnishing documents to the Government in support of
the Pre-Award survey is part of the evaluation of the responsibility process
and is not to be construed as an indication that an offeror will receive award
of a contract.


 


10

















 


ARTICLE TWO: Parties to the Contract


 


Section 1 – Contractor Information - Within
thirty (30) days of the date of contract award, Contractor shall provide DRMS
the following information:


 


(A) Designation
of key persons, if any, in addition to those identified in Contractors
technical proposal


 


(B) Contractor
shall provide the SCO notification of any changes to the above within ten (10) days
of the change.


 


Section 2 – Transfer and Hypothecation


 


(A) General Prohibition - Except
as specifically provided herein or specifically approved by DRMS in writing,
the Contractor may not directly or indirectly sell, transfer, assign, pledge,
offer as collateral or otherwise hypothecate all or any part of its rights or
obligations under the contract.


 


(B) Attempted Transfer
- Any attempted transfer in violation of the provisions of this Article shall
be null and void, and shall constitute a material breach of this contract.


 


Section 3 – Contract of Sale


 


(A) Relationship of Parties - This
contract is an agreement for the sale of the property by DRMS as seller to
Contractor as the buyer. Contractor and DRMS expressly disavow the creation of
any other relationship, including without limitation principal-agent,
master-servant, employer-employee, general or limited partnership, or joint
venture, between DRMS and the Contractor.


 


(B) Parties to Contract - The
parties to this contract are DRMS and the Contractor. The exclusive
representative of DRMS for all purposes under this contract is the SCO, and all
notices, demands, requests, consents, approvals, declarations, reports and
other communications to DRMS from Contractor shall be deemed ineffective unless
addressed to the SCO. Communications from the Contractor to anyone other than
the SCO shall not be deemed received by DRMS.


 


Section 4 – Authority of Sales
Contracting Officer (SCO) - On behalf of DRMS, the SCO
has the authority to represent DRMS and to commit DRMS to take such actions as
are permitted or required and to extend or waive timing requirements or
deadlines as may reasonably be required under the circumstances of this
contract.


 


ARTICLE THREE: Contract Financial
Retention


 


Section 1 – Bid Deposit -
Each bid must be accompanied by a refundable bid deposit in the form of a
guaranteed instrument (cashier’s or certified check) in the amount of
one-hundred thousand dollars ($100,000.00) payable to U.S. Treasury. DRMS will
retain the bid deposit until completion of the wind-down period. The bid
deposit will be applied to any unpaid billings or to offset any other claim
that DRMS may have against the Contractor. DRMS shall return any available
balance of the bid deposit, without interest, to Contractor at the completion
of the wind-down period.


 


Section 2 – Payment Deposit
- Within ten (10) days of contract award, Contractor shall provide DRMS
the amount of five-hundred thousand dollars ($500,000.00), referred to as the
payment deposit. The payment deposit must be made via guaranteed instrument,
cashier/certified check, wire transfer or


 


11

















 


Electronic Funds Transfer (EFT). DRMS will retain the payment deposit
until the completion of the wind-down period. The payment deposit will be
applied to any unpaid billings or to offset any other claim that DRMS may have
against the Contractor. DRMS shall return any available balance of the payment
deposit, without interest, to Contractor at the completion of the wind-down
period.


 


Section 3 – Financial Guarantee Bond
– Within thirty (30) days of award Contractor shall obtain a financial
guarantee bond in favor of DRMS in the amount of four million five hundred
thousand dollars ($4,500,000.00). The purpose of the Financial Guarantee Bond
shall be to provide a source of payment to DRMS in an amount reasonably
sufficient to satisfy the financial obligations of Contractor or for damages
arising out of a material breach by Contractor. The Financial Guarantee Bond
shall be issued by such surety and in such form that are acceptable to DRMS.
The Bond shall be carried for the duration of the contract, however, may be
renewed on an annual basis, renewable at the sole option of the surety.


 


ARTICLE FOUR: Contract Performance


 


Section 1 – Performance Period
- Subject to the early cancellation option provisions and the Termination for
Convenience of the Government provisions, the Government shall provide property
for a thirty-six (36) month period from the date of the initial delivery order
to Contractor. DRMS may exercise two one-year options to extend the performance
period for up to an additional twenty-four (24) months based on Government
requirements. The Government may extend the term of this contract by providing
written notice to the Contractor within 120 days of contract end. The
preliminary notice does not commit the Government to an extension. If the
Government exercises this option, the extended contract shall be considered to
include this option clause. The total duration of this contract, including the
exercise of any options shall not exceed sixty (60) months or five (5) years.


 


Section 2 – Phase-In Period
- The Contractor must be fully operational and prepared to accept all property
within three (3) months of award. If Contractor is unable to receive
property after three (3) months, DRMS shall have the right to sell
property to other buyers until the Contractor is functional and able to receive
property. Contractor must notify the Government when they are ready to accept
property. Contractor may request acceleration of referrals at any delivery
point, and DRMS will respond to such request in the exercise of its sole
discretion.


 


Section 3 – Termination for Convenience
of the Government – The Government may terminate
performance of work under this contract in whole or, from time to time, in part
if the SCO determines that a termination is in the Government’s interest. The
SCO shall terminate by delivering to the Contractor a Notice of Termination
specifying the extent of termination and the effective date.


 


After receipt of a Notice of Termination, and except as directed by the
SCO, the Contractor shall immediately proceed with the following obligations,
regardless of any delay in determining or adjusting any amounts due under this
clause:


 


(1) Stop work as specified in the
notice.


 


(2) Unless otherwise directed by the
SCO, place no further subcontracts or orders (referred to as subcontracts in
this clause) for materials, services, or facilities. Stop any pending sales and
make no further sales to resale buyers.


 


12

















 


(3) Terminate all subcontracts to the
extent they relate to the work terminated.


 


(4) Unless otherwise directed by the
SCO, assign to the Government, as directed by the SCO, all right, title, and
interest of the property issued by Delivery Order whether in Contractor or
subcontractor facilities. Whether property is in Contractor or subcontractor
facilities, coordinate with the SCO the return of any property issued to the
Contractor by Delivery Order to the Government or move property to Contractor
owned facilities for Government retrieval upon written direction from the SCO.


 


(5) With approval or ratification to the
extent required by the SCO, settle all outstanding liabilities and termination
settlement proposals arising from the termination of subcontracts.


 


(6) Take any action that may be
necessary, or that the SCO may direct, for the protection and preservation of
the property related to this contract that is under title and/or in the
possession of the Contractor or subcontractor and in which the Government has
or may acquire an interest until surrendered to the Government or its agent.
The Contractor and SCO shall agree on payment for the preservation and
protection of goods. Failure to agree on an amount will be a dispute under the
Disputes clause.


 


The Contractor shall submit a complete termination inventory schedule
to include a list, certified as to DTID and quantity, of termination inventory
no later than 30 days from the effective date of termination, unless extended
in writing by the SCO upon written request of the Contractor within this 30 day
period. The Government will review the inventory list within 14 days and
contact the Contractor with any discrepancies and notify the Contractor of
items that the Contractor can retain title of. The retention of title of these
items will be by mutual agreement.


 


If the Contractor has any cost it wishes the Government to consider
prior to the Government assessing settlement costs, they must be submitted
within 14 days of final removal of returned surplus property to the Government.
Any cost submitted by the Contractor must be determined to be allocable,
allowable, and reasonable and supported with documentation to the degree
required by the SCO. Unless extended in writing by the SCO, upon written
request of the Contractor, the SCO shall determine the settlement proposal
within 14 days of receipt of any submission of final Contractor settlement
costs. If the Contractor fails to submit their proposal for settlement cost
within the time allowed, the SCO may determine, on the basis of information
available, the amount, if any, due the Contractor or owed by the Contractor. If
the Contractor pays for return of the property issued on Delivery Order, the
cost of return of the property issued by Delivery Order will be offset by any
payment the Government has already received for said property. If the
Government pays for the return of property payment received for the property
will be returned less any Government determined settlement costs to be paid by
the Government.


 


The Contractor has 14 days to review the contract settlement proposal
and request any additional information. Payment to be made by either party
shall be made within 30 days of Contractor receipt of the settlement proposal.
Any amount due the Contractor may include a reasonable allowance for profit for
work completed. If the Contractor fails to pay settlement cost within the
specified time, the cost will be deducted from any deposit funds available from
the performance of this contract. Any remaining funds from the deposit will be
returned by the Government.


 


If the Contractor and the SCO fail to agree on the amount that may have
been determined due to the Contractor by the Government due to the termination
of the sales contract, the SCO shall pay the Contractor the amounts determined
by the SCO within the specified time. Any amount due to be paid


 


13

















 


by the Contractor and not paid within the specified time period shall
be charged interest based on the rate determined by the Secretary of Treasury.


 


The cost principles and procedures of Part 31 of the Federal
Acquisition Regulation, in effect on the date of this contract, shall govern
all costs claimed, agreed to, or determined under this clause.


 


The Contractor shall have the right of appeal, under the Disputes
clause, from any determination made by the SCO, except that if the Contractor
failed to submit the termination settlement proposal or a request for equitable
adjustment within the time provided.


 


In arriving at the amount due the Contractor under this clause, there
shall be deducted;


 


(1) Any claim which the Government has against
the Contractor under this contract; and


 


(2) The agreed price for, or the
proceeds of sale of, materials, supplies, or other things acquired by the
Contractor or sold under the provisions of this clause and not recovered by or
credited to the Government.


 


This clause has the same full effect, if this contract is terminated in
partial.


 


Unless otherwise provided in this contract or by statute, the
Contractor shall maintain all records and documents relating to the terminated
portion of this contract for 3 years after final settlement. This includes all
books and other evidence bearing on the Contractor’s costs and expenses under
this contract. The Contractor shall make these records and documents available
to the Government, at the Contractor’s office, at all reasonable times, without
any direct charge. If approved by the SCO, photographs, microphotographs, or
other authentic reproductions may be maintained instead of original records and
documents.


 


Section 4 - Wind-Down Commencement Date
- Beginning with the date that is the earlier of either the end of the
performance period or the effective date of termination by reason of DRMS or
Contractor exercising the early cancellation option or by reason of a material
breach, the contract shall wind-down for a period of 120 days.


 


Section 5 - Cessation of Property
Referrals - There shall be no further referrals of
property by DRMS to Contractor from the wind-down commencement date forward.
Submission of monthly, quarterly and annual reports shall continue as before
the wind-down commencement date until the wind-down is completed.


 


Section 6 - Conduct of Wind-Down
- From the wind-down commencement date forward, Contractor shall perform their
remaining obligations hereunder in accordance with the provisions of this
contract. During contract wind-down period should the Contractor elect not to
sell property that as been previously issued on a Delivery Order, it shall be
the Contractor’s sole responsibility for any cost associated with the return of
the property to the Government. Any purchase price paid by the Contractor shall
not be refunded to the Contractor. As in Article Six, the Contractor has
the right to return, and is required to return, property after having paid the
Contractor’s purchase price should the Contractor elect to not resell.


 


14

















 


ARTICLE FIVE: Distributions to DRMS


 


Section 1 – Monthly Up-Front Property
Purchase – Contractor will pay DRMS the billed amount
for the up-front purchase of property each month. DRMS will issue a Statement
of Account (SOA) to the Contractor no later than the last day of each month.
The SOA will reflect the up-front purchase price (based on the Contractor’s bid
price) for the property issued to the Contractor during the prior month less
any credits applied during the month for returned property. The balance
reflected on the SOA will be the amount owed to DRMS by the Contractor for the
particular month billed. Contractor is required to submit payment to DRMS no
later than the 15th of each month.


 


Section 2 – Monthly Back-End Property
Payment – In addition to the Up-front purchase price
described in Section 1 of this article, the contractor will also pay DRMS
1.0% of the acquisition value 120 days after appearing on a Delivery Order.
DRMS will issue a Statement of Account (SOA) to the Contractor on the last day
of the month. The SOA will reflect the back-end payment for property that was
issued to the Contractor 120 days ago. Contractor is required to submit payment
to DRMS no later than the 15th of each month.


 


Section 3 – Method of Payment -
DRMS prefers payment to be made via an Electronic Funds Transfer (EFT),
however, payments may also be made via wire transfer, guaranteed instrument
(certified or cashier’s check) made payable to U.S. Treasury. The account
number for EFT and wire transfers will be provided by the SCO and updated
whenever necessary.


 


Section 4 – Failure to Make Timely
Payment - Should Contractor fail to pay to DRMS the
full amount owed as reflected on the SOA each month on or before the date that
such payment is due, DRMS may, in its sole discretion, (i) apply that
portion of the payment deposit that is necessary to pay the amount owed, and (ii) notify
Contractor that such failure constitutes a material breach that the Contractor
must cure within ten (10) days of notice thereof by paying to DRMS an
amount equal to one- hundred twenty percent (120%) of the subject amount owed,
which payment shall be applied by DRMS to replenish and increase the amount of
the payment deposit. The Contractor shall also be assessed interest on the
payment based on the current rate as determined by the Secretary of Treasury.
The interest will be added to the next month’s Statement of Account.


 


ARTICLE SIX: Product Pool, Property
Referrals and Title Transfer


 


Section 1 – Product Pool


 


(A) Property Flow
- Property included in this contract will normally be comprised of useable
items identified by the Government as safe to sell and located in the
Continental United States, to include Alaska, Hawaii, and Guam, however, at
times, the Government may include locations outside of CONUS at the agreement
of both parties. Property issued will predominately contain a demilitarization
code of A, and may include B, Q and F. NOTE:
National security decisions are currently pending that could impact the sale of
demilitarization code B and Q items and, therefore, could be removed from the
product pool in the future. The Government guarantees to issue the
Contractor the lesser of 130,000 lines items of property annually or issue to
the Contractor property with an


 


15

















 


acquisition value of $600,000,000.00 annually under this contract. DRMS
reserves the right to sell property or offer property through alternative sales
or contract means for all property not considered part of this contract. The Government may elect to offer property consisting
of hazardous material, such as lead acid batteries, paints, sealants, and
fuels; and certain demilitarization code F items where the demilitarization has
been performed.


 


(B) Government’s Right to Retrieve
Property - The Government reserves the right to
retrieve or restrict property from the Contractor that is found to have become
controlled or is needed in support of or impacts the DOD mission. Contractor
must return those items upon notification from the Government and must
coordinate return shipment with the SCO. DRMS will refund Contractor’s purchase
price in addition to the cost associated with the cost of return of the property
to DRMS. DRMS will not reimburse the Contractor for any lost revenue associated
with property that has been sold to a resale buyer.


 


(C) Contractor’s Right to Non-Delivery
Order Items - The Government will decide items to be
sold to the Contractor regardless of FSC, location, or demilitarization code.
Contractor has no right to any property that is not issued to them on a
delivery order. Subject to certain limited exceptions, the Contractor will have
the contractual obligation to purchase the flow of property when issued on a
delivery order. The Contractor, however, will also have the right to return,
and is required to return, property after having paid the Contractor’s purchase
price should the Contractor elect to not resell. The Contractor shall coordinate
return of property with the SCO. Contractor is liable for all cost associated
with the return of property to the Government. The price paid by the Contractor
to the Government for the property will not be refunded to the Contractor once
it is paid to the Government. All property returns must be properly identified
to DRMS by the original Disposal Turn-In Document (DTID) number. DRMS reserves
the right to sell property or offer property through alternative sales or
contract means for all property not issued on a Delivery Order under this IFB.


 


Section 2 – Property Referrals


 


(A) Location -
Property that is referred for sale to Contractor shall be located within the
Continental United States to include Alaska, Hawaii and Guam. DRMS may opt to
deliver property to the contractor located outside CONUS with contractor’s
acceptance. With the exception, granted by the SCO, of certain Receipt In Place
(RIP) property, and rolling stock/bulk property, Contractor will pack, load and
transport property listed on a Delivery Order to Contractor’s identified
facilities.


 


(B) Initial Delivery Order - DRMS
shall deliver the initial Delivery Order to the Contractor on the dates that
are (i) within the time
specified for the phase-in period, and (ii) the
date DRMS has received and approved all the information required under the
provisions of this contract.


 


(C) Delivery Order
- At least twice per calendar month, and no more than once weekly, the
Government shall issue a consolidated list to the Contractor called a Delivery
Order.


 


(D) Delivery Order Format - DRMS will provide the Delivery
Order to the Contractor in a electronic transmission (E-Mail). DRMS shall
provide training to the Contractor as necessary to clarify the fields of the
Delivery Order, however at a minimum, the following information will be
represented on the Delivery Order:


 


Physical Location of the Property Shipment


Disposal Turn in Document Number


Requisition Number if RCP Property


National Stock Number (NSN)/Local Stock
Number (LSN)


Inventory Item Name


Item Unit of Issue


 


16

















 


Quantity


Item Unit Price


Acquisition Value


Contractor’s Purchase Price



DEMIL Code


 


(E) Title Transfer of Property
- Unless otherwise provided in this IFB, DRMS shall transfer title to the
Contractor when property appears on a Delivery Order. Title to RIP property or
rolling stock/bulk property will also occur when property appears on a Delivery
Order. Any subsequent resale transactions of property are between the
Contractor and the resale buyer, not the Government and the resale buyer


 


(F) Waiver Option to Property by
Contractor – Contractor has the option to waive
rights to a particular line item of property where title has transferred to the
Contractor if Contractor elects to not pursue resale. The waiver option does
not relieve the Contractor from the responsibility of payment of the Contractor’s
up-front or back-end purchase price for the line item involved. If property is
located at Contractor’s facility, Contractor shall be responsible for the
property’s return to DRMS and any associated cost for the return of property to
DRMS. All options exercised under this condition must be approved by and fully
coordinated with the SCO.


 


(G) Items Requiring Partial
Mutilation – Some end-use items within the DRMS
inventory require mutilation prior to resale and are not considered or
identified by DRMS as useable property. However, parts from such items may be
permissibly removed from the end-item prior to mutilation and would then be
eligible for resale. Such items may include parachutes requiring the shroud to
be cut, and certain vehicles identified as Gama Goats, Go Ability with Overall
Economy and Reliability (GOER) Vehicles, High-Mobility Multipurpose Wheeled
Vehicles (HMMWVs), R-9 Re-Fuelers, Crash Fire Rescue Trucks and M-151 Vehicles
requiring various partial mutilation to preclude use for their intended
purpose. DRMS may from time to time, in the exercise of its sole discretion,
notify Contractor in writing of the availability of certain such items. Within
ten (10) business days of such notice, Contractor may in the exercise of
its sole discretion notify DRMS that Contractor elects to purchase such items
at a price based on the Contractor’s bid percentage and acquisition value
reflected on the Delivery Order. Contractor and DRMS shall cooperate as
necessary in the circumstances to effect delivery of such items and the
Contractor shall remove the subject parts in an agreed upon time after
delivery.


 


(H) Risk of Loss
– Contractor is responsible for paying for all items appearing on the Delivery
Order unless it is approved as a line item discrepancy by the SCO. Contractor
shall bear the risk of loss for all other property where title has transferred
to the Contractor and Contractor has lost or damaged the property due to
negligence.


 


(I) Line Item Discrepancies – Contractor
must notify the SCO of any line item discrepancies, i.e., quantity
overage/shortage, acquisition value, item misdescription, etc., within 21days
of being issued on a Delivery Order. Contractor must provide notification to
DRMS with supporting documentation of such line item discrepancy and the
property must be made available for inspection by DRMS. Failure to provide
notice of an alleged discrepancy in accordance with the criteria set forth in
this subparagraph may result in denial of the line item discrepancy. The amount
of any credit to which the Contractor is entitled to shall be deducted from the
amount of Contractor’s next Statement of Account. Line item discrepancies for
property issued at a DRMS facility must be identified by the Contractor at the
time of DRMS/Contractor joint inventory and prior to Contractor removing
property. Acquisition values are assigned by the Government and normally not up
for dispute.


 


17
















 


(J) Line Item Excessive Acquisition
Value - Any line item with a reported acquisition
value in excess of $10M (ten million dollars) shall be excluded from this
contract at the sole option of the Contractor. The SCO must be notified within
thirty (30) days of title passing to the Contractor of the reported item. Any
reported items shall be returned to DRMS and the Contractor’s purchase price
shall be refunded by DRMS. The Contractor shall be responsible for any cost
associated with the return of property to DRMS, however, under the
circumstances of return of items over $10M in acquisition value, the Contractor
shall be reimbursed for the price paid to DRMS for the property.


 


(K) RIP and Rolling Stock Property
– Certain items may be issued to the Contractor from a RIP location. DRMS may
elect to allow resale on-site of rolling stock/bulk property items. DRMS shall
identify this property to the Contractor at the time it appears on the Delivery
Order. Contractor may be allowed to conduct the resale of rolling stock/bulk
items from the DRMS location.


 


(L) Referral of CV-2 Property due to
Termination or Cancellation of CV-2 - If the CV-2
contract ends in termination or cancellation, DRMS may elect in the exercise of
its sole discretion to refer certain CV-2 product pool items for sale to the
Contractor pursuant to the provisions of this contract. The Contractor shall be
required to purchase such items as provided herein. DRMS shall provide written
notice of such election to the Contractor.


 


(M) Property Surges
- Contractor acknowledges that certain installations may close during the
performance period of this contract. As a result, large generations of property
could be turned into DRMS and could ultimately be referred under this contract.
DRMS and the Contractor agree to cooperate and institute special procedures as
necessary in connection with property surges.


 


(N) Non-DRMS Assets
- The Contractor may be asked to serve as a sales broker by DRMS from time to
time as DRMS may elect to refer certain non-DRMS assets to the Contractor. As
such, these items are not entered on the DRMS accountable record. DRMS may
choose, with Contractor’s agreement, to have the Contractor re-sell these items
on a case-by-case basis for a sales fee of 12% of the resale. Title to this
property remains with the Government until sale to a resale buyer and removal
of the items from Government premises. DRMS will issue these items as
receipt-in-place and the resale must be conducted in-place as well. Any
inspections or sales of this property must have prior approval by DRMS.
Contractor will be required to account for, identify, and pay DRMS separately
from other funds each month that are involved with this contract.


 


ARTICLE SEVEN: Demilitarization Codes and
Trade Security Control (TSC) Requirements


 


Section 1 – Demilitarization Codes - Many
of the items in the product pool are subject to Trade Security Controls (TSC)
(i.e., export restrictions) based on their demilitarization code assignment and
their offensive/defensive capabilities. These fall into one of two categories.
One is assigned demilitarization code Q Commerce Control List Items (CCLI) that
are designated by the Department of Commerce pursuant to the provisions of the
Export Administration Act of 1979, Executive Order 12924 and regulations
promulgated there under. Demilitarization codes B and F items are Munitions
List Items (MLI) designated by the Department of State pursuant to the
provisions of the Arms Export Control Act and implementing regulations.


 


Demilitarization code B, Q and F items need not be demilitarized before
sale, but export of these items requires export licenses issued by the
Department of State or the Department of Commerce. DRMS presently sells such
items within CONUS pursuant to the procedures described below. As


 


18

















 


described below, the Contractor will also be required to comply with
current TSC procedures and will be required to comply with any new TSC
requirements that may be mandated during the performance period. Such new
requirements may impose higher costs upon the Contractor.


 


Section 2 – Contractor’s Trade Security
Control Requirements - Prior to award of this
contract, the Contractor will be required to obtain a TSC clearance by
providing TSC Assessment Office a properly completed End-Use Certificate (EUC)
in the form of a DLA Form 1822 (copy available on the DRMS web site, www.drms.dla.mil,
then click on Sales Customer. The clearance may need to be renewed during the
performance period of this contract and at the request of the Government. The
clearance investigation determines that the entity is who it claims to be,
doing business at the name and location claimed and that there are no
disqualifying factors present (i.e., convictions for illegal export of military
technology, debarment by a Government activity, etc.).


 


(A) Resale Buyer’s Trade Security
Control Requirements - All secondary purchasers of
DEMIL code B, Q or F sold to the contractor under this contract must also
receive a similar clearance. The Contractor will be required to notify
prospective buyers of the necessity to comply with TSC requirements and export
controls. The Contractor will be required to obtain and keep on file for review
by DRMS or other Government entities a properly completed EUC from the
prospective resale buyer of each lot (or group of lots at a single re-sale
event) of demilitarization code B, Q, and/or F items before releasing such
items to the prospective resale buyer. For the vast majority of export
controlled items, the Contractor’s resale buyer is under no obligation to
submit any follow-up documentation after the original purchase. The Contractor’s
export control compliance responsibilities will generally be limited
accordingly to obtaining a properly completed EUC, releasing property to a
buyer only after confirming that the buyer is cleared and acknowledges it’s
responsibilities for follow-up sales (i.e., advising buyers not to sell beyond
the United States without proper Department of State/Department of Commerce
documents/notice), and maintaining the associated compliance records.


 


(B) Contractor’s Responsibilities
Prior to Award to Resale Buyer - Upon receipt of a
properly completed EUC, the Contractor must also obtain Government approval
before re-selling any TSC item and releasing property to the buyer. The TSC
Assessment Office is the clearance authority and the determining authority
relative to the proper completeness of End Use Certificates (EUCs). Contractor
agrees to comply with any change to current TSC procedures should they occur.


 


(C) Excluded Parties List System
(EPLS) - Contractor is prohibited from awarding a
contract to a customer identified as being suspended or debarred from receiving
Government contracts. Prior to awarding any contract, Contractor agrees to
search the Excluded Parties List System (EPLS) website at, www.epls.gov, to
ensure the potential buyer, or their entity, is not excluded.


 


Section 3 – Munitions List Items and
Commerce Control List Items -


 


(A) Acknowledgment of Export
Restrictions - Contractor acknowledges that some
items in the product pool are subject to export restrictions and Trade Security
Controls (TSC) including both Commerce Control List Items (CCLI) that are
designated by the Department of Commerce pursuant to the provisions of the
Export Administration Act of 1979, Executive Order 12924 and regulations
promulgated there under and that have a DEMIL Code of “Q”, and Munitions List
Items (MLI) that are designated by the Department of State pursuant to the
provisions of the Arms Export Control Act and implementing regulations and that
have a DEMIL Code of “B or F” for the purposes of this contract.


 


(B) Munitions List Items and Commerce
Control List Item (MLI/CCLI) Compliance - The use,
disposition, export and re-export of MLI/CCLI property is subject to all
applicable United States laws and regulations, including the Export
Administration Control Act of 1979 (50 U.S.C.


 


19

















 


Appendix. 2401, et seq.); Arms Export Control Act (22 U.S.C. 2651, et
seq.); International Traffic in Arms Regulation (22 C.F.R. 121); and Export
Administration Regulation (15 C.F.R. 368, et seq.). Making false statements and
concealment of any material information regarding the use, disposition, export
or re-export of the property is not authorized in accordance with the
provisions of this contract and may constitute a violation of the provisions of
18 U.S.C. 1001, which provides a maximum penalty of five years imprisonment
and/or a maximum fine of $10,000; the provisions of 22 U.S.C. 22778, which
provides a maximum penalty of ten years imprisonment and/or a maximum fine of
$1,000,000; or, the provisions of 50 U.S.C. Appendix. 2410, which provides a
maximum penalty of ten years imprisonment and/or a maximum fine of five times
the value of the property exported or $1,000,000, whichever is greater, and
which also provides for administrative sanctions, including civil penalties of
up to $10,000, and the revocation of authority to export goods from the United
States.


 


(C)      Commerce
Control List Items (CCLI) – Contractor warrants
that none of the CCLI items in this contract will be directly or indirectly
used or disposed of for military use or exported unless a full disclosure of
the origin of the property is made by Contractor. The disclosure must reference
this sales contract number, and be submitted to:


 


Department of Commerce


Office of Export Administration


P.O. Box 273


Washington, DC 20044


 


Contractor understands and agrees that the Office of Export
Administration may require Contractor to mutilate the property to the extent
necessary to preclude its use for its originally intended purpose, and/or
require Contractor to have or obtain an export license before the property may
be exported outside of the United States, Puerto Rico, American Samoa, Guam the
Trust Territory of the Pacific Islands or the Virgin Islands


 


(D) Seagoing Containers
– Contractor acknowledges that whenever a seagoing container is used by a
resale buyer to remove property, Contractor shall report the container number
and, if known, the destination port to DRMS before the container is loaded.


 


(E) Airworthiness Certification –
Contractor is responsible to make arrangements with
the Federal Aviation Administration (FAA) for all inspections needed to obtain
airworthiness certification. The FAA provides guidance and instructions to
establish eligibility for civilian airworthiness certification for surplus
military aircraft and aircraft assembled from spare and surplus parts. Before
an Airworthiness Certificate is issued, the assembled aircraft must be in
conformity with the data forming the basis for that FAA type-certificate. The
responsibility to satisfy FAA requirements lies entirely with the Contractor
and subsequent resale buyers.


 


(F) Flight Safety and Critical
Aircraft Parts (FSCAP) - The military services are
responsible for ensuring all available historical records/documentation are
included when repairable Flight Safety Critical Aircraft Parts (FSCAP) are
turned into DRMS. Unused FSCAP, in original, undamaged packaging must be marked
with NSN, contract number, CAGE Code(s) and part number. FSCAP items
lacking appropriate records/documentation, or which are condemned, shall be
mutilated by DRMS and not eligible under this contract. When a FSCAP item is
transferred to DRMS, block 27 of the DTID will annotate the appropriate
Criticality Code and the remarks section of the DTID shall contain the letters
FSCAP. Serviceable or repairable FSCAP may undergo R/T/D and sales provided the
historical records and documentation are furnished. DRMS makes no
representation as to a part’s conformance with FAA requirements. As a condition
of sale of a FSCAP, and prior to installing the parts, the receiving persons or
organizations must subject the parts to inspection, repair, and/or overhaul by
a competent manufacturer or other entity certified by the FAA to perform such
inspection and repair. The aircraft


 


20

















 


parts may not meet FAA design standards, and/or may have been operated
outside the limitations required under the Federal Aviation Regulations.
Inspections and FAA approvals will be needed to determine an aircraft part
condition for safe operation, or a part’s eligibility for installation on a
civil aircraft. Failure to comply with FAA requirements can result in
unacceptable safety risks and also subject Contractor or subsequent resale
buyers to enforcement actions. Purchaser is required to notify resale buyers
that the FSCAP cannot be used on commercial aircraft in absence of specific FAA
approval (usually granted by an FAA Repair Shop), and further, cannot be sold
back to the DOD or to foreign governments/military without the appropriate
records/documentation.


 


ARTICLE EIGHT: Inventory Assurance


 


Section 1 – Do-Not-Sell (DNS) List - As
often as necessary, DRMS will furnish the Contractor a Do-Not-Sell (DNS) List
representing items that are or have become controlled and no longer eligible
for sale. Contractor is required to process their current inventory against the
DNS List whenever an updated DNS List is provided by DRMS. The Contractor is
required to return any item identified on the DNS List that is in the
Contractor’s current inventory and not removed by a resale buyer. Contractor
must present the costs for such returns to DRMS for approval. DRMS shall
reimburse the Contractor’s purchase price in addition to the cost associated
with the cost of return of the property to DRMS. DRMS will not reimburse the
Contractor for any lost revenue associated with property that as been sold to a
resale buyer. For property becoming controlled yet previously removed by a
resale buyer, DRMS may also direct the Contractor to notify the buyer and
attempt to recover the property.


 


Section 2 – Demilitarization Code Change
(DCC) List – DRMS will provide the Contractor a
Demilitarization Code Change (DCC) List reflecting demilitarization code
changes as they occur. The Contractor must run their current inventory against
the DCC List whenever provided by DRMS. The Contractor is required to return
any item that becomes DEMIL required as indicated that is in the Contractor’s
current inventory and not removed by a resale buyer. DRMS shall reimburse the
Contractor’s purchase price in addition to the cost associated with the cost of
return of the property to DRMS. DRMS will not reimburse the Contractor for any
lost revenue associated with property that as been sold to a resale buyer. For
property becoming DEMIL required and previously removed by a resale buyer, DRMS
may direct the Contractor to notify their buyer and attempt to recover the
property.


 


Section 3 – Property Assurance
Contractor De-Incentives – De-Incentives will apply to
the Contractor with regard to conducting a resale of items after DRMS has
identified it as controlled or DEMIL required and placed the item on the DNS or
DCC List. De-Incentives will apply in that DRMS will charge the Contractor 50%
of the acquisition value of any item DRMS has identified to the Contractor as
not eligible for sale based on the item commodity or demilitarization code, yet
DRMS finds it for sale on the Contractor’s website.


 


21

















 


ARTICLE NINE: Government Required Reports


 


Section 1 – Inventory Reports – Contractor
is required to provide DRMS monthly reports reflecting a complete list of all
items issued by DRMS on a Delivery Order that is currently in the possession of
the Contractor. The report must record items by DTID and location and must
identify all property that has not been removed from the Contractor /Government
facilities.


 


Section 2 – Resale and Returns Report – Contractor
is required to provide a monthly report to DRMS that reflects property that has
either been resold/removed or that has been returned to the Government without
resale. The report must be in a spreadsheet format and include all fields
provided on a Delivery Order. For items resold, the event and lot number
constituting the resale must be included as well as resale customer
information.


 


Section 3 – Seller Indirect Cost (SIC)
Report - In the event SIC is approved by the SCO,
Contractor must provide a monthly report detailing the costs actually incurred.
The report must be in a spreadsheet format and must include supporting
documentation of the SIC. At no time does SIC include lost profits.


 


Section 4 – Small Business Participation
Reports – On a quarterly basis, the Contractor is
required to provide DRMS a small business participation report. The report must
be in a spreadsheet format and reflect a summary of the previous quarter’s
participation.


 


Section 5 – Non Responsive Resale Buyer
Report – On a monthly basis, the Contractor is
required to provide DRMS a spreadsheet listing resale buyers who failed to
either respond or return property when requested by the Contractor. The
spreadsheet must identify the resale Event and Lot number applicable, unique
identification number, buyer’s name and address, NSN/LSN, Item Name, quantity,
and demilitarization code. In addition, the spreadsheet must provide the dates
of Contractor’s attempts to retrieve the property and the customer’s
responses/non-responses.


 


Section 6 – Federal Asset Sales (FAS)
Requirements – Contractor is required to transmit all
active sales information for each property to the eFAS/GovSales.gov portal
using one of the following methods:


 


·                  Property
Listings in CSV format transmitted via SFTP


·                  Property
Listings in XML format transmitted via web service/SOAP


 


On a quarterly basis, the Contractor is required to provide the
following post sales data to the GovSales Planning Office:


 


·                  Total Number of
Assets Sold – Assets sold equals number of individual assets sold not number of
lots sold


·                  Total Number of
Assets Posted on GovSales.gov Portal


·                  Gross Revenue
Received – Revenue equals sales proceeds


·                  Percentage of
Personal Property Assets Sold Equal to Greater than Market Value - This metric
only applies to FSG 14 (Aircraft); FSG 19 (Boats); FSG 23 (Motor Vehicles
including cars, trucks, buses, and motorcycles; and FSG 2420 (Wheeled Tractors)


 


22

















 


·                  Cycle Time –
Time that an asset leaves the RTD process through payment


·                  Total Net Sales
Revenue – Proceeds minus costs


·                  Implementation
Guide Provided


 


ARTICLE TEN: Property Storage and
Government owned Material Handling Equipment (MHE)


 


Section 1 – Property Storage on
Government Facilities - The Contractor will remove the
property appearing on a Delivery Order from the Government’s storage facility
within 14 days of receipt of a Delivery Order. Temporary staging areas will be
provided for the Contractor to pack and sort property for loading and shipping
to Contractor’s storage facilities. At the time property is issued to the
Contractor on a Delivery Order, DRMS may agree to allow resale of special
circumstance items on DRMS facilities on a case by case basis. If property
resale is permitted on Government property, the Contractor is responsible for
any damage that is caused to any Government equipment or facility that arises
out of the negligence of the Contractor, its vendors or resale buyers, to include
the clean-up of any hazardous materials spills. Storage charges in the amount
of $10.00 per day, per DTID, will apply for items not removed from Government
facilities within 75 days of appearing on a Delivery Order for property DRMS
has allowed the contractor to re-sell on DRMS property. Under no circumstance
will former surplus Government property sold to the Contractor remain on
Government premises beyond 121 days after issuance of a Delivery Order.
Property left on Government premises longer than 121 days will, at the
Government’s sole discretion, revert to Government ownership and control
without refund of any Contractor monies received. DRMS will include such
charges on the monthly Statement of Account and the cost for the storage will
be the total responsibility of the Contractor. Contractor is responsible for
ensuring their resale customers have met the security requirements to enter the
facility and are responsible for escorting their customers at all times.
Contractor and Contractor’s resale customers shall have access to rolling
stock/bulk property for inspection, reselling, packing, loading or shipping
during hours that such facility is normally staffed. Contractor shall
coordinate such access with the management of each facility. In addition, DOD customers
may require additional storage space, therefore, property issued to Contractor
may be required to be relocated by the Contractor and as an expense to the
Contractor, not the Government. Contractor is not permitted to conduct property
resale on a DRMS facility without the expressed authorization of DRMS.


 


Section 2 – Property Storage on
Government Facilities – Receipt In Place Property - Receipt
In Place (RIP) locations will be identified to the Contractor by the
Government, generally consisting of property issued from a site outside the
DRMS footprint. When permitted by DRMS, the Contractor will be allowed to
resell property from the RIP location. If property resale is permitted on
Government property, the Contractor is responsible for any damage caused to any
Government equipment or facility that arises out of the negligence of the
Contractor, its vendors or resale buyers, to include the clean-up of any
hazardous materials spills. Storage charges in the amount of $10.00 per day,
per DTID, will apply for items not removed from Government facilities within 75
days of appearing on a Delivery Order. Under no circumstances will former
surplus Government property sold to the Contractor remain on Government
premises beyond 121 days after issuance of a Delivery Order. Property left on
Government premises longer than 121 days will, at the Government’s sole
discretion, revert to Government ownership and control without refund of any
Contractor monies received. Contractor is


 


23

















 


responsible for ensuring their resale customers have met the security
requirements to enter the facility and are responsible for escorting their
customer at all times. Contractor and Contractor’s resale customers shall have
access to RIP property for inspection, resale, packing, loading or shipping
during hours that such facility is normally staffed. Contractor shall
coordinate such access with the management of each facility.


 


Section 3 – DRMS Infrastructure
- Contractor acknowledges that DRMS may reduce its infrastructure, including
without limitation by closure of some DRMOs. Contractor further acknowledges
that this contract shall remain in force notwithstanding such infrastructure
reduction measures that DRMS in its sole discretion may implement.


 


Section 4 – Government Owned Material
Handling Equipment (MHE) - Government owned Material
Handling Equipment (MHE) will be made available to the Contractor at the
discretion of the Government and Contractor will be responsible for all damage
from use.


 


ARTICLE ELEVEN: Property Returns


 


Section 1 – Property Accountability of
Items Issued to Contractor - Regardless of the
ultimate disposal of items issued on a Delivery Order to the Contractor, DRMS
must maintain cradle-to-grave accountability of all property. Throughout the
contract performance and wind-down period, at a minimum, Contractor must
identify all property regardless of the disposition method, by DTID number to
DRMS. Under no circumstance may Contractor dispose of property without reporting
the outcome to DRMS.


 


Section 2 – Line Item Discrepancies –  DRMS
will issue property to Contractor on a Delivery Order. DRMS and the Contractor
must compare the Delivery Order with the actual items available prior to the
property leaving Government facilities. Line item discrepancies must be
identified to DRMS at the time of the DRMS/Contractor joint inventory. The
Contractor will either return the discrepant items to DRMS at the time they are
identified, or if not returned, the applicable Delivery Order will be annotated
of any line item discrepancies and signed by both DRMS and the Contractor.
Financial adjustments will be reflected on the monthly Statement of Account.


 


Section 3 – Property Retrieval of
Controlled Items –


 


(A) Property Located at Contractor’s
Facilities - Property issued to the Contractor may
later become controlled and not eligible for sale. DRMS will provide
notification to the Contractor that identifies such property. Contractor must
return the identified items to the Government within three (3) business
days from the DRMS notification. DRMS will advise the method for return based
on the applicable item and will reimburse the Contractor costs associated with
the return of property to DRMS..


 


(B) Property Resold - Not Removed
from Contractor’s Facilities – Contractor may have
resold items that later become controlled and not eligible for sale. If the
identified controlled item has not been removed from the Contractor’s
facilities, Contractor agrees to not allow removal and will return the
identified item to the Government within three (3) business days of the
DRMS notification. DRMS will advise the method for return based on the
applicable item and will reimburse the Contractor


 


24

















 


costs associated with the return of property to DRMS. DRMS will not
reimburse the Contractor for any lost revenue associated with the return of
property that has been resold.


 


(C) Property Resold - Removed from
Contractor’s Facilities – Contractor may have
resold items that the resale buyer has physically removed from the Contractor’s
facilities that later becomes controlled. Within three (3) days of the
DRMS notification, Contractor is required to notify their customer and request
the item’s return if the resale of such property has occurred within the last
year. Contractor must initially contact their customer by either e-mail or
registered letter. If the resale buyer is non-responsive to the initial request
or fails to return the property, Contractor is responsible for contacting the
resale buyer again within 21 days of the initial contact via a registered
letter.


 


(D) Status Report of Non-Responsive
Resale Buyers - On a monthly basis, Contractor is
responsible for notifying DRMS of the results of the property retrieval
actions. The report must identify the resale buyers who are non-responsive to
either the retrieval attempts or those that fail to return the property.
Reports must be submitted to the SCO by the 15th of each month and
must reflect the status of the previous month’s actions. Contractor must
identify the controlled item by DTID, NSN/LSN, and provide the resale customer’s
name, address, and phone number.


 


(E) Sales Participation of
Non-Responsive Resale Buyers - Based on the
national security threat of the property being requested to be returned, DRMS
reserves the right to request that the Contractor no longer conduct a resale to
non-responsive customers. DRMS will notify the Contractor of
individuals/companies falling into this category on a case by case basis.


 


Section 4 –
Reutilization/Transfer/Donation (RTD) Property Returns - There
will be occasions when the Government will request the return of property
issued to the Contractor because it is needed in support of the DRMS
Reutilization/Transfer/Donation (RTD) mission. Contractor must return those
items back to DRMS when identified by DRMS and that have not been resold and
physically removed from the Contractor’s facilities. DRMS will issue the
Contractor’s purchaser price for the return of the property. DRMS will advise
the method for return based on the applicable item. DRMS shall reimburse the
Contractor for the cost associated with the return of property to DRMS. DRMS
Reutilization customers will be required to certify that the property requested
is “mission essential” and DRMS will have checked current on-hand DRMS
inventory and determined that there is no other like item on-hand that can meet
the customer’s requirement. Property will only be requested back from the
Contractor to meet a Transfer or Donation customer’s requests when either an
error was made on the part of DRMS or the DRMS Property Accounting system
causing the item to not receive full screening or the customer’s approved
requisition was not processed appropriately by DRMS.


 


ARTICLE TWELVE: Contract Operation
Requirements


 


Section 1 – Contractor Participation in
Federal Asset Sales - Contractor is required to
participate in the Government’s Federal Asset Sales Program whereby the
Contractor agrees to integrate all sales being conducted to the website,
GovSales.gov, a Real and Personal Property Portal that facilitates the sale for
all Government Agencies. See Article Nine, Section 6, for the options
available to post sales to the website. Required quarterly reports reflecting
Contractor sales performance must be provided to the GSA GovSales Planning
Office.


 


Section 2 – Contractor Small Business
Participation - The Contractor is required to ensure
that forty (40) percent of the total gross proceeds generated by the resale of
property issued under this contract is


 


25

















 


received from small business concerns with 100 or fewer employees and
further, that 20 percent of those total gross sales are to firms with fewer
than 25 employees. The Contractor is required to maintain and provide DRMS
records on a monthly basis that reflect the participation.


 


Section 3 – Contractor Awareness of the
DRMS Environmental Management System (EMS) - DRMS
implemented Environmental Management System (EMS) in accordance with ISO
14001:2004(E). An EMS is an overall management system that includes
organizational structure, planning activities, responsibilities, practices,
procedures, processes and resources for developing, implementing, achieving,
reviewing and maintaining the environmental policy of an organization. The DRMS
EMS is designed to ensure all personnel, including Contractors whose work
activities are being conducted on Government premises and could cause real or
potential environmental impacts, are aware of how their work supports the EMS.


 


Section 4 – Inventory Assurance by
Contractor –


 


(A) Do-Not-Sell List/DEMIL Code
Change List – Initially and then periodically
thereafter,  DRMS will furnish the
Contractor a Do-Not-Sell (DNS) List and a DEMIL Code Change (DCC) List
representing items that are or have become controlled and no longer eligible
for sale or that have experienced a DEMIL code change. Contractor is required
to process their current inventory against the DNS/DCC List whenever an updated
List is provided by DRMS. The Contractor is required to return any items
identified on the DNS List or any item that has become DEMIL required on the
DCC List that are in the Contractor’s current inventory and have not been
removed by a resale buyer.


 


(B) DRMS Verification of Assurance
Process - The DRMS Verification Office will
conduct daily reviews of the items that the Contractor is offering for sale to
ensure items appearing on the DNS List or DCC List are not being sold.
De-Incentives will apply in that DRMS will charge the Contractor 50% of the
acquisition value of any item DRMS has identified to the Contractor as not eligible
for sale based on the item commodity or demilitarization code, yet DRMS finds
it for sale on the Contractor’s website.


 


Section 5 – Contractor Web Based
Application – Contractor must develop a web-based
application for use on this contract with regard to reviewing property for
accurate coding and sales eligibility. The Government and Contractor shall
refer to this application as the Quarantine Tool (Q-Tool) and it will
ultimately serve as a 5-day Government preview area of all items the Contractor
has lotted for sale. During the 5-day preview, the Contractor is not allowed to
make property visible to the general public. The Government must notify the
Contractor of any item not eligible for sale within the 5-day preview time. All
property approved as a result of the Q-Tool application must be offered for
sale on the Contractor’s web site with a system generated icon/marker
identifying the item as having been reviewed by the Government prior to posting
for the sale. If the Contractor reassigns a previously approved item to another
sales event, the item must be returned to the Q-Tool with the system generated
icon/marker. The Q-Tool application must have the ability to export the data
into a spreadsheet format and must include the following fields:


 


Sale Event ID Number/Lot Number


Site Location of the Property


Federal Supply Class (FSC)


National Item Identification Number (NIIN) or Local Stock Number (LSN) 


Item Name/Description


 


26

















 


Part Number


Demilitarization Code


Manufacturer and associated CAGE Code Quarantine Date


Quantity


Acquisition Value


DTID


End Use of Item (if available)


Photograph of Item (if available)


 


Section 6 – Automatic Data Processing
Equipment (ADPE) Certification by Contractor –


 


(A) Certification Process - Should
DRMS elect to issue Automatic Data Processing Equipment (ADPE) to the
Contractor on a Delivery Order, Contractor is required to certify FSCs 7020,
7021, 7022, and 7025 in accordance with OASD Memo dated June 4, 2001,
SUBJECT: Disposition of Unclassified DOD Computer Hard Drives provided in the
Appendices of this IFB (copy available on the DRMS web site, www.drms.dla.mil,
then click on Sales Customer).


 


(B) Reporting Requirements
– Contractor is required to provide DRMS with a log reflecting the CPUs
received and processed. The log will include the DTID number made available by
DRMS, manufacturer, model, and serial number; and will indicate whether a hard
drive and/or data disc was present. The disposition of the hard drives will be
a required field, to include the reporting of a discovery of “SECRET” or
classified stickers on the property. In addition, Contractor must removal all
Government markings or stickers before resale.


 


(C) DRMS Inspection of Property –
Contractor is required to allow DRMS or a DRMS
sponsored agency to perform physical spot checks of property to include
inspection of the CPUs to verify that the hard drives have been removed.
Inspection of the destroyed hard drives will be permitted so as to determine
the effectiveness of the destruction.


 


Section 7 – Food and Drug Administration
(FDA) Certification for Medical Devices - Contractor
is required to complete a Food and Drug Administration (FDA) Certificate within
ten (10) days of award. Contractor is also required to request and retain
a FDA Certificate for each resale buyer of medical devices in Federal Stock
Groups (FSGs) 65 and 66. Copy of form is available on the DRMS web site,
www.drms.dla.mil, then click on Sales Customer.


 


Section 8 – Duties of Care and Loyalty –


 


(A) Duty of Care – Contractor
shall not cause or permit any action or omission in the course of performing
the contract that damages DRMS and constitutes gross negligence, recklessness,
or intentional harm. Performance under this contract must be in compliance with
all local, state and federal laws and regulations. Accordingly, it is the
responsibility of the Contractor to ensure all such laws and regulations are
adhered.


 


(B) Duty of Loyalty – Contractor
shall carry out the responsibilities under the contract with honesty, good
faith and fairness towards DRMS.


 


27

















 


ARTICLE THIRTEEN: Material Breach


 


Section 1 – Notice of Material Breach
- In the event of a material breach or default of the respective duties in the
performance of the contract, Contractor or DRMS, the party asserting such
material breach shall serve notice upon the party that committed or is alleged
in the notice to have committed such material breach.


 


Section 2 – Response to Notice - Except
as otherwise provided, the breaching party may cure the material breach within
thirty (30) days of such notice referred to as the cure period or within such
longer cure period as the notice may provide unless, within the cure period,
the non-breaching party withdraws the notice in writing or extends the cure
period in writing.


 


Section 3 – Termination
- Termination shall be effective upon notice by the non-breaching party to the
breaching party served upon or after the date of such decision. Unless
otherwise provided, Contractor and DRMS shall continue to perform their
respective duties under the contract during the cure period.


 


Section 4 – Intentional Breach
- An asserted material breach comprised of an intentional breach of the duty of
loyalty or the duty of care may not be cured unless DRMS, in its sole
discretion, specifies a cure period in the notice. Termination shall be
effective upon the later of the date of service of such notice or the
expiration of the cure period.


 


Section 5 – DRMS Remedies for Material
Breach by Contractor - If the breaching party is the
Contractor, DRMS may take any one, any combination or all of the following
actions to satisfy its claims for any non-payments or other damages:


 


	
  (i)

  	
  Apply the payment deposit;

  
	
  (ii)

  	
  Present a claim for indemnity against Contractor;

  
	
  (iii)

  	
  Present a claim upon the Fidelity Bond or any other applicable
  insurance or surety policy;

  
	
  (iv)

  	
  Seek appointment of a receiver or trustee for Contractor;

  
	
  (v)

  	
  Seek monetary damages, restitution or any other legal or equitable
  remedy to which it is entitled;

  
	
  (vi)

  	
  Assert any other right, claim, or remedy available pursuant to the
  contract disputes act.

  



 


Section 6 – Indemnification of DRMS by
Contractor - Contractor will comply fully with the
provisions of this contract. If the breaching party is the Contractor, the
Contractor shall indemnify and hold DRMS harmless for all damages arising.


 


Section 7 – Indemnification of
Contractor by DRMS - If the breaching party is DRMS,
DRMS shall indemnify and hold Contractor harmless for its damages.


 


ARTICLE FOURTEEN: Contract Seller Indirect
Costs


 


Section 1 – Documentation and Payment of
Seller Indirect Costs –


 


(A) Seller Indirect Costs (SIC)
– Pursuant to a DRMS mission changes, certain Contractor costs directly related
to DRMS mission may be deemed Seller Indirect Costs (SIC), thus, the costs to
perform such duty can be deducted entirely from distributions otherwise payable
to DRMS. This mechanism largely leaves the risks associated with these issues
with DRMS and accordingly should considerably lessen these concerns for the
Contractor. All costs permitted as SIC, must be allocable, allowable,
reasonable, pre-approved by DRMS on a case-by-case basis prior to being
executed by the


 


28
















 


Contractor. DRMS approval of SIC must be in writing and not assumed to
be approved by the Contractor and will never include reimbursements for lost
profits.


 


(B) Supporting Documentation
- Each disbursement for a SIC shall be supported with a bona fide documentation
(including records in an electronic medium) that adequately demonstrate that
each such disbursement is in the proper amount for goods or services actually
provided in advance of such disbursement.


 


ARTICLE FIFTEEN: Contract Compliance, Audits
and Reviews


 


Section 1 – Compliance with Applicable
Laws and Regulations – Contractor and its resale
buyers shall comply with the requirements of all applicable federal, state, and
local laws, regulations, ordinances, directives and instructions connected with
the performance of this contract, including without limitation such
requirements pertaining to income and payroll taxes, environmental matters and
occupational safety.


 


Section 2 – Licenses and Permits – Contractor
shall obtain any necessary licenses and permits, and comply with all federal,
state, and local laws and regulations in connection with the prosecution of the
work. This responsibility requirement will be a matter of inquiry during the
SCO’s pre-award evaluation of the bidder’s capability to perform the contract
satisfactorily. It will also be a continuing matter of inquiry by the SCO
during the performance of the contract.


 


Section 3 – Duties of Care and Loyalty –
The Contractor shall not cause or permit any action or omission in the course
of performing the contract that constitutes gross negligence, recklessness or
intentional harm. Contractor shall carry out their responsibilities under the
contract with honesty, good faith and fairness toward DRMS.


 


Section 4 – Prohibited Activities
– Contractor shall not undertake the following activities without written
permission from the SCO, which permission may be granted or withheld by DRMS in
the exercise of its sole discretion:


 


(a)     Enter
into a partnership, joint venture or other arrangement the purpose or effect of
which is to engage indirectly in a transaction that would be prohibited by the
provisions of this contract if undertaken by the Contractor directly; or


 


(b) Enter
into contracts or other arrangements that would assign all or substantially all
responsibility for and control of performance of the contract to another party
or parties, without the prior written approval of DRMS which will consider such
request in accordance with the Assignment of Claims Act of 1940, as amended, 41
U.S.C. sec. 15, and the Government’s best interest. In the event of any
improper assignment without the written approval of DRMS, this contract shall
be terminated at the option of the Government in the exercise of its sole
discretion; or


 


(c)     File
a voluntary petition seeking liquidation, reorganization, arrangement or
readjustment, in any form, of its debts under Title 11 of the United States
Code (or corresponding provisions of future law) or any other federal or state
insolvency law; file an answer consenting to or acquiescing in any such
petition; make any assignment for the benefit of Contractor’s creditors; or
admit in writing Contractor’s inability to pay its debts as they mature,
without the prior written consent of DRMS.


 


Section 5 – Contractor Cooperation in
DOD Investigations/Audits – Contractor agrees to fully
cooperate with the Government when informed by DRMS of an ongoing special
investigation by any


 


29

















 


DOD or Federal Government investigation service or agency or during
DRMS Compliance Reviews or Audits. Contractor agrees to provide DRMS with all
requested information regarding property or information relating to the
Contractor’s resale buyer. Contractor must make all sales records pertaining to
such investigations available to DRMS within three (3) business days of
the request. Requests for information should be provided in electronic format
when possible. Contractor personnel with knowledge of the particular subject
matter must be available to cooperate with any Government investigation


 


Section 6 – Contractor Record Retention
- Contractor shall make all books, records, documents and other supporting
evidence available to satisfy contract administration and audit requirements by
any Government agency identified by the SCO. Records must be made available for
six (6) years after the wind-down period is concluded, or for such period
of time as Contractor, for its own purposes, retains its books, records,
documents, and other supporting evidence, whichever is longer.


 


Section 7 – Records Maintenance
– Contractor shall maintain all records accurately and in a manner that will
allow clear and accurate auditing. Records pertaining to inventory shall
contain, at a minimum, the National Stock Number or Local Stock Number,
Disposal Turn-In Document (DTID) number, quantity, date sold, sale price, date
Contractor received payment from the resale buyer, name and address of the
resale buyer, and storage location prior to resale. The Government reserves the
right to request and inspect these documents as it deems necessary. In the
event that Contractor fails to maintain or provide any of these documents to
the Government, the Government may in its sole discretion seek and cause
termination.


 


Section 8 – Inspection of Records and
Workplace by Government - The Government has the right
to audit the records and inventory the property and to review Contractor’s
operations. The audit may consist of a complete or random sample examination.
Contractor must ensure that, prior to any resale, the property is readily
identifiable as formerly Government property.


 


Section 9 – Purpose and Content of
Compliance Audits, Reviews and Further Reviews - DRMS
shall have the right to conduct Compliance Reviews of Contractor. DRMS may
actually conduct the compliance reviews, or use other Government agencies or
private firms, as the SCO deems appropriate. DRMS shall also have the right to
conduct Further Reviews as provided herein. The purpose of such Compliance
Reviews or Further Reviews is to determine, after the fact, the extent of
Contractor’s compliance with the terms and provisions of the contract and
applicable laws and regulations.


 


Section 10 – Methods and Procedures for
Compliance Reviews


 


(A) Method
- Compliance Reviews and Further Reviews may include, without limitation,
examination of records, and, if necessary, personal interviews of persons who
may have knowledge of facts regarding Contractor’s compliance with the
provisions of this contract, including employees or of any supplier or resale
buyer.


 


(B) Procedures
- A Compliance Review shall be conducted at any time during normal business
hours and on any business day. Contractor shall permit inspection of any
physical location used by the Contractor, including, without limitation, the inventory
(including the records relating thereto), examination of the records, making
copies and abstracts, and discussions of the affairs, finances and accounts of
Contractor with any employee, subcontracting attorney or certified public
accountant of Contractor. Contractor will produce any records identified by
DRMS as necessary to support the review


 


30

















 


process and DRMS may maintain copies of all documentation/electronic
files that support the review being conducted. DRMS shall use its best efforts
to assure that Compliance Reviews are conducted in a manner that does not
unduly burden or unreasonably impinge upon the efficient operation of the
affairs of Contractor.


 


(C) Scope - The
scope of Compliance Reviews shall be as necessary to confirm Contractor’s
compliance with the provisions of the contract.


 


Section 11 – Further Reviews
- If a Compliance Review determines there is a reasonable basis to believe that
a default or breach of this contract has occurred, DRMS, upon written notice to
Contractor, may conduct any such further investigation that it deems
appropriate under the circumstances, using such outside consultants, including
attorneys, as it deems necessary or advisable. Contractor shall permit such
persons, as are designated by DRMS, to visit and inspect any physical location
used by the Contractor, including, without limitation, the inventory (including
the records), and to examine the records, make copies and abstracts, and
discussion of the affairs, finances and accounts of Contractor with any
employee, subcontracting attorney or certified public accountant of the
Contractor. Notwithstanding the foregoing, if Contractor gives notice to DRMS
stating that a Further Review is not justified, DRMS shall delay the
commencement of any such Further Review for a period of fourteen (14) days
after the delivery of its notice thereof to permit Contractor to seek a
determination of the appropriateness of the Further Review.


 


Section 12 – Compliance Notification
- After completing the Compliance Review and/or Further Review, DRMS shall
notify Contractor in writing of any breach or default identified during the
Compliance Review and/or Further Review.


 


Section 13 – Costs of Oversight
- DRMS shall pay all fees, costs and expenses DRMS incurred in connection with
its Compliance Reviews and Further Reviews.


 


Section 14 – Notice of Audit Adjustment -
If any party determines that the records reflect any inaccuracies requiring
entry of an adjustment, including, without limitation, the disbursement of any
amount from the operating account or a transfer account that is inconsistent
with any provision of the contract or the disposition of an item of property
that is inconsistent with any provision of the contract, such party shall give
written notice thereof to the other party or parties.


 


Section 15 – Procedures for Adjudication
of Audit Adjustments - If either Contractor or DRMS
disputes an asserted audit adjustment, it may submit such dispute for
resolution. Upon resolution of such dispute or, if no party submits a dispute
for resolution within sixty (60) days of the notice of audit adjustment, the
audit adjustment shall be deemed confirmed as asserted.


 


Section 16 – Remedies for Audit
Adjustments - Upon confirmation of an audit
adjustment, Contractor will pay to the party in question, or the party will pay
to Contractor, as the case may be, the amount required to restore the parties
to their respective positions status  quo  ante, and
Contractor will correct the records in accordance with the audit adjustment as
confirmed. If, as a result of the audit adjustment, Contractor is to pay DRMS,
each such payment shall include interest calculated by the US Treasury or at
the rate provided by applicable law.


 


31

















 


ARTICLE SIXTEEN: Disputes


 


Section 1 – Disputes
– Any contract awarded as a result of this sale is subject to the Contract
Disputes Act of 1978 (41 U.S.C. 601-613).


 


Section 2 – Claims – The
term, “Claim” as used in this Article is defined as a written demand or a
written assertion by one of the contracting parties seeking the payment of
money, adjustment, or interpretation of the contract terms, or other relief
arising under or relating to this contract. A claim by the Contractor shall be
made in writing and, unless otherwise stated in this contract, submitted within
6 years after accrual of the claim to the SCO for a written decision. A claim
by the Government against the Contractor shall be subject to a written decision
by the SCO. A voucher, invoice, or request for payment that is not in dispute
when submitted is not a claim for the purposes of the Contract Disputes Act.
However, where such submission is subsequently not acted upon in a reasonable
time, or disputed either as to liability or amount, may be converted to a claim
pursuant to the Contract Disputes Act.


 


Section 3 – Decisions -
For Contractor claims the SCO must, render a decision within 60 days of the
request or must notify the Contractor of the date by which the decision will be
made. The SCO’s decision shall be final unless the Contractor appeals or files
a suit as provided in the Act. The Contractor shall proceed diligently with
performance of this contract, pending final resolution of any request for
relief, claim, appeal, or action arising under the contract, and comply with
any decision of the SCO.


 


Section 4 – Alternative Dispute
Resolution (ADR) – The parties agree to use their best
efforts to resolve any disputes that may arise without litigation. If unassisted
negotiations are unsuccessful, the parties will use Alternative Dispute
Resolution (ADR) techniques in an attempt to resolve the dispute. If the ADR is
not successful, the parties retain their existing rights. If the Contractor
refuses an offer for ADR, the Contractor shall inform the SCO in writing, of
the Contractor’s specific reasons for rejecting the offer. Litigation will only
be considered as a last resort when ADR is unsuccessful or has been documented
by the party rejecting ADR to be inappropriate for resolving the dispute.


 


ARTICLE SEVENTEEN: Insurance and Bond
Requirements


 


Section 1 – Insurance and Bond Contract
Requirements – Contractor shall obtain and maintain
the following insurance and bond requirements throughout the performance and
wind-down period:


 


Section 2 – Modification of Special
Circumstance Conditions


 


(A) Sale by
Reference (SBR) (Attachment VI) Part 5 - Additional Special Circumstance
Conditions (DRMS Form 86, Oct 93), Article D, Liability and
Insurance, paragraphs (a)(2) and (a)(3,) is modified as follows:


 


(1)  Bodily
Injury Insurance in an amount of not less than two hundred fifty thousand
dollars ($250,000.00) any one individual and one million dollars ($1,000,000)
any one accident or occurrence.


 


(2)  Property
Damage Liability Insurance in the amount of two hundred fifty thousand dollars
($250,000.00) (which shall include any and all property whether or not in the
care, custody or control of Contractor). The annual coverage shall be not less
than one million dollars ($1,000,000).


 


32

















 


Section 3 – Further Modifications –


 


(A) Sale by
Reference Part 5, Article D, paragraph (a) is also amended as
follows:


 


(1)  All
risk coverage for fire and other property perils for all property owned by
Contractor with aggregate coverage of five million dollars ($5,000,000.00).


 


(2)  Umbrella
liability coverage up to two million dollars ($2,000,000.00).


 


(3)  Fidelity
or blanket bond coverage in the amount of at least five million dollars
($5,000,000.00). Contractor shall obtain and maintain such coverage with a
responsible surety company with respect to all of Contractor’s employees,
officers and directors to protect Contractor against losses, including, without
limitation, those arising from theft, embezzlement, fraud, or misplacement of
funds, money, or documents. The issuer, policy terms and forms and amounts of
coverage, including applicable deductibles, shall be satisfactory to DRMS, and
the policy shall include a provision that the issuer shall notify DRMS in
writing within five (5) business days of the cancellation or termination
of any such coverage or of any modification of such coverage. Contractor shall
notify DRMS in writing within five (5) business days after filing a claim
under such coverage.


 


(4)  Comprehensive
general liability, automobile liability, umbrella liability, Worker’s
compensation and other insurance coverage as may be required by law. At its
option, Contractor may obtain and maintain such additional insurance, including
directors and officers coverage and errors and omissions coverage, as
Contractor deems appropriate.


 


Section 4 – Evidence of Insurance
- Within thirty (30) days form the date of award, and annually thereafter,
Contractor shall provide DRMS copies of policies, certificates of insurance or
other proof evidencing the coverage required. Contractor must obtain the
minimum coverage specified unless DRMS approves a variance from such minimum
coverage. In the event that a specified coverage or limit is or in the future
becomes commercially impractical, such approval shall not be unreasonably
withheld.


 


ARTICLE 18: Deleted in its entirety




ARTICLE NINETEEN: Miscellaneous Provisions


 


Section 1 – Binding Effect
- Subject to the restrictions on transfers and encumbrances set forth, this
contract shall insure to the benefit of and be binding upon DRMS and the
Contractor and their respective legal representatives, successors and assigns.
Whenever this contract refers to any party, such reference shall be deemed to
include a reference to the legal representatives, successors and assigns of
such party.


 


Section 2 – Notices -
All notices, demands, requests, consents, approvals, declarations, reports and
other communications required with regard to this contract shall be in writing
except as otherwise provided and addressed as follows regardless of the medium
used to deliver such:


 


33

















 


Mr. Neil Watters


Sales Contracting Officer


DRMS-362


74 North Washington Avenue 


Battle Creek, Michigan 49017 


Fax number (269) 961-5283


 


Section 3 – Severability
- If any provision of this contract or the application to any person or
circumstance shall be invalid or unenforceable to any extent, the remainder of
this contract and the application of such provisions to other persons or
circumstances shall not be affected and the intent of this contract shall be
enforced to the greatest extent permitted by law, DRMS may in the exercise of
its sole discretion cause termination by notice served within thirty (30) days
of the date upon which such judgment becomes final, such termination to be
effective five (5) days after the date of service of such notice.


 


Section 4 – Headings
- The headings appearing in this contract are inserted only as a matter of
convenience and in no way define, limit, construe or describe the scope or
intent of any article or section of this contract.


 


Section 5 – Survival -
The rights and obligations of the parties under this contract shall survive for
a period of six (6) years after the completion of the wind-down period.


 


Section 6 – Waiver
- No consent or waiver, express or implied, by any party to or of any breach or
default by any other party in the performance by such other party of its
obligations under this contract shall be deemed or construed to be a consent or
waiver to or of any other breach or default in the performance by such other
party of the same or any other obligations of such other party under this
contract. Failure on the part of any party to complain of any act or failure to
act by any of the other parties or to declare any of the other parties in
default, regardless of how long such failure continues, shall not constitute a
waiver by such party of its rights hereunder.


 


Section 7 – Force Majeure -
The parties shall be excused for the period of any delay in the performance of
any obligations under this contract when prevented from performing such
obligations by cause or causes beyond their reasonable control, including,
without limitation, civil commotion, war, invasion, rebellion, hostilities,
military or usurped power, sabotage, pestilence, riots, fire or other casualty
or acts of God.


 


Section 8 – Use of DRMS Name; Public
Communications - Contractor shall not use the name of
DRMS, DLA or DOD or its logos for any marketing or other purposes without the
express prior written consent of DRMS, which consent may be withheld for any
reason whatsoever and is subject to the sole discretion of DRMS. Contractor
shall not publicly denigrate the surplus property disposition program of the
U.S. Department of Defense or the conduct thereof by DRMS.


 


Section 9 – Tense and Gender -
Unless the context clearly indicates otherwise, the singular shall include the
plural and vice versa. Whenever the masculine, feminine or neuter gender is used
inappropriately in this contract, this contract shall be read as if the
appropriate gender had been used.


 


34

















 


Section 10 – Entire Agreement;
Modification - This
contract, and the materials incorporated herein by reference, constitute the
entire agreement between the parties regarding the matters contained in this
contract. If there is any inconsistency between the terms of this contract and
those of any Appendix, Schedule or Exhibit, the terms of this contract shall
govern. There are no promises or other agreements, oral or written, express or
implied, between the parties other than as set forth in this contract. No
change or modification of, or waiver or compromise under, this contract shall
be valid unless it is in writing and signed by a duly authorized representative
of the party against which it is to be enforced. Contractor understands and
agrees to submit a written request for contract modification to the SCO prior
to effecting any change from that stated in its technical proposal (including
any subcontractors identified therein), and/or sale of Government property-item
bid page, whether occurring before or after the release of the property.
Contractor further agrees not to effect such changes without first receiving
the written approval of the SCO.


 


Section 11 – Computation of Time -
In computing any period of time prescribed or allowed by this contract, the day
of the act, event, or default from which the designated period of time begins
to run shall not be included. The last day of the period so computed shall be
included unless it is not a business day, in which event the period runs until
the end of the next business day.


 


Section 12 – Electronic Communication - DRMS
and Contractor shall cooperate to facilitate delivery of Delivery Orders,
Statement of Accounts, and other required reports to the extent reasonably
practical by electronic transmission, such as by electronic mail or file
transfer, rather than by delivery of a physical removable magnetic or optical
storage medium.


 


35

















 


ADDITIONAL TERMS AND CONDITIONS OF SALE


 


The following General Information and Instructions and Special
Conditions of Sale contained in the Defense Reutilization and Marketing Service
pamphlet entitled, “Sale by Reference - Instructions, Terms and Conditions
Applicable to Department of Defense Personal Property Offered for Sale by
Defense Reutilization and Marketing Service, March 1994” (hereinafter,
Sale by Reference; a copy of the Sale by Reference is available on the DRMS web
site, www.drms.dla.mil, then click on Sales Customer), are hereby incorporated
by reference and become a part of this IFB and any resulting contract:


 


Part 1 General Information and Instructions - All Conditions
except 4.


Part 2 General Sale Terms and Conditions - All Conditions except
4, 7, 12, 14, 28, 29, 30, 32 & 33. 


Part 4 Special Sealed Bid Term Conditions - All Conditions except
Articles A and D.


Part 5 Additional Special Circumstance Conditions – As follows:


 


	
  Article D:

  	
  Liability and Insurance

  
	
  Article F:

  	
  Privacy Act Materials

  
	
  Article H:

  	
  Radio Frequency Devices

  
	
  Article L:

  	
  Medical Devices

  



Part 7 Additional Special Circumstance Conditions Hazardous and
Dangerous Property - As follows:


	
  Article C:

  	
  Transporting Hazardous Material Containers

  
	
  Article E:

  	
  Dangerous Property

  
	
  Article F:

  	
  Compressed Gas Cylinders

  
	
  Article J:

  	
  Respiratory Protection Program

  
	
  Article L:

  	
  Asbestos

  
	
  Article M:

  	
  Packaging, Marking, and Disposal of Asbestos

  
	
  Article N:

  	
  Asbestos Dust Control and House Keeping and Clean-up Procedures

  
	
  Article Q:

  	
  Cartridge Cases

  
	
  Article R:

  	
  Disposition and Use of Hazardous Property

  
	
  Article S:

  	
  Government’s Right of Surveillance

  
	
  Article T:

  	
  Right of Refusal for Hazardous Property

  
	
  Article U:

  	
  Record Maintenance

  
	
  Article V:

  	
  Certified and Non-Certified Radiation Emitting Electronic Products

  
	
  Article W:

  	
  Radioactive Material

  
	
  Article X:

  	
  Beryllium Dust/Powder

  



 


THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT
BLANK


 


36

















 


ADDITIONAL CONTRACT ADVISEMENTS


 


Prospective bidders should note that work performed on Government
premises, such as at DRMOs and other delivery points, may be subject to the
provisions of Public Law 89-176, September 10, 1965 (18 U.S.C. 4082(c)(2))
and Executive Order 11755, December 29, 1973 (convict labor), and/or the
Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333) and
regulations of the Secretary of Labor there under (overtime compensation).


 


Prospective bidders should also note that provisions of the Food, Drug
and Cosmetic Act, 21 U.S.C. 311 et seq. and regulations promulgated there under
forbid the sale of adulterated or misbranded medical devices.


 


Prospective bidders should also note that there are certain Public Laws
that may impact the flow of items:


 


Public Law 98-575, Commercial Space Launch
Act (“CSLA”), dated October 30, 1984 - The
purposes of the CSLA are to promote economic growth and entrepreneurial
activity through the utilization of the space environment for peaceful purposes;
encourage the private sector to provide launch vehicles and associated launch
services; facilitate/encourage the acquisition (sale, lease, transaction in
lieu of sale, or otherwise) by the private sector of launch property of the
U.S. which is “excess or otherwise not needed for public use,” in consultation
with Secretary of Transportation. Donation screening is not required prior to
sale.


 


Wildfire Suppression Aircraft Transfer Act of
1996, dated January 3, 1996 - This act authorizes
the sale of excess Department of Defense (DOD) aircraft and aircraft parts to
facilitate the suppression of wildfire. Prior to the sale, the Secretary of
Agriculture must certify that the person or entity is capable of meeting the
terms and conditions of a contract to deliver fire retardant by air. The
purchaser must certify that the aircraft and aircraft parts will be used only
for wildfire suppression purposes.


 


Public Law 106-181, Oil Spill Containment Act
- This statute, also known as “The Wendell H. Ford Aviation Investment and
Reform Act for the 21st Century,” allows DOD, during the period 4 April 2000
through 30 September 2002, to sell aircraft and aircraft parts to a person
or entity that provides oil spill response services (including the application
of oil dispersants by air).


 


HAZARDOUS PROPERTY: Should
hazardous property be issued under this contract, the Government cautions that
the item, material, or substance, or one or more components, parts,
constituents or ingredients thereof may be corrosive, reactive, ignitable or
exhibit other hazardous or toxic properties. The Government assumes no
liability for any damage to the property of the Contractor, to the property of
any other person, or the public property, or for any personal injury, illness,
disability or death to the Contractor, Contractor’s employees, or any other
person subject to Contractor’s control, or to any other person including
members of the general public, or for any other consequential damages arising
from or incident to the purchase, use, processing, disposition, or any
subsequent operations performed upon, exposure to or contact with any
component, part, constituent or ingredient of this item, material or substance.
The Contractor agrees to hold harmless and indemnify the


 


37

















 


Government for any and all costs and expenses incurred incident to any
claim, suit, demand, judgment, action, debt, liability costs and attorney’s
fees or any other request for monies or any other type of relief arising from
or incident to the purchase, use, processing, disposition, subsequent operation
performed upon, exposure to or contact with any component, part, constituent or
ingredient of this item, material or substance, whether intentional or
accidental.


 


RESOURCE CONSERVATION AND RECOVERY ACT
NOTICE: EPA Hazardous Waste Regulations, 40 CFR Part 260
et seq. published at 45 Federal Register 33063-33285, May 19, 1980, became
effective on November 19, 1980. These cradle-to-grave regulations detail
the responsibilities of generators, transporters, treaters, storers and
disposers of hazardous waste. Civil and criminal penalties are available for
noncompliance. DRMS does not intend to transfer any RCRA regulated hazardous
waste under this contract as regulated waste is disposed of under DRMS’
hazardous waste contracts. However, DRMS can make no representations as to when
and under what circumstances state, federal or local environmental regulations
may be applicable to Property transferred to and held by the Contractor.


 


CHEMICAL AGENT RESISTANT COATING (CARC)
PAINT: Prospective offerors are cautioned that that
some items are, or likely to contain or be coated with a chemical agent
resistant to coatings containing trivalent chrome, lead, cobalt-zinc
hexamethylene disocyanate and other chemicals which are a hazard to human
health if not processed properly. The Government brings the following
precautions/warnings to the attention of prospective offerors who plan to apply
the CARC paint or disturb the coating on the property in any way:


 


Airline respirators should be used during
application processing (applying/sanding/torch cutting, etc.) unless air
sampling shows exposure to be below OSHA/host Government standards, then a
chemical cartridge air-purifying respirator must be used.


 


CARC paint should be isolated from heat,
electrical equipment, sparks and open flame during storage or application.
Local exhaust ventilation should be used for inside processing.


 


Exposure to vapor/mist/dust or fumes can
cause irritation to respiratory tract (lung, nose, throat), edema, dermatitis,
dizziness, rash, itching, swelling of extremities, eye irritation or damage to
nervous system, kidney or liver. Coating may be fatal if swallowed.


 


REFRIGERANT:
Refrigeration equipment and appliances are subject to the Clean Air Act (CAA)
Amendments of 1990 which prohibit the venting or release to the environment of Class I
or Class II ozone depleting substances, and are also subject to the
Refrigerant Recycling Rule in 40 Code of Federal Regulations (CFR) Subpart
F 82, 150-166, requiring the recovery and verification of refrigerant removal
by a certified technician, using certified recovery equipment prior to final
disposal as scrap or in a landfill.


 


WARRANTY FOR USEABLE AIRCRAFT COMPONENTS /
PARTS: The Contractor is advised that the aircraft
components/parts on this sale may not currently be certified by the appropriate
regulatory agencies for use on civilian aircraft. The Contractor represents,
warrants, and guarantees to the Government that this (these) item(s) will
not be used, offered for sale, or sold for use in civilian aircraft unless
proper certification is obtained from the appropriate regulatory agencies. This
(these) item(s) also may not be installed on any civilian aircraft unless
installed by a Federal Aviation


 


38

















 


Administration (FAA) certified repairman and/or mechanic. The
Contractor agrees to hold the Government harmless from any and all demands,
suits, actions, or claims of whatsoever nature arising from or out of violation
of this warranty.


 


AIRCRAFT INSIGNIA AND MARKINGS:
The Contractor will be required to permanently remove or obliterate all
Military Service distinctive markings from aircraft prior to removal from the
Government premises. The Contractor may remove or obliterate the markings by
scraping, grinding, use of paint removers, or by other means upon approval of
the SCO. This requirement does not apply to aircraft which are required to be
demilitarized.


 


HELICOPTER BLADES AND TAIL ROTORS:
It is the responsibility of the recipient to determine if the helicopter blade
or tail rotor as designed and manufactured can be put to the use intended by
the recipient since there may be use requirements which may not be met by
military specifications or serviceability criteria. Each item has an
accompanying historical record with which the further use of the item for its
designed purpose can be determined.


 


KITCHEN STOVES:
Contractor shall ensure that the warning statement which is affixed to such
items regarding their design features and reuse will not be removed prior to
sale to an ultimate user, and Contractor shall include this clause in its
entirety in any later sale or transfer of title, unless Contractor modifies,
replaces or repairs the stoves to remove or eliminate the hazard.


 


REMAINDER OF PAGE INTENTIONALLY LEFT BLANK


 


39
















 


DEFINITIONS


 


Actual Cost: An amount determined on the basis of the
cost incurred.


 


Allocable Cost: A cost is
allocable to a Government contract if it is incurred specifically for the
contract, if it benefits both the contract and other work and can be distributed
to them in a reasonable proportion to the benefits received, or is necessary to
the overall operation of the business, although a direct relationship to any
particular cost objective cannot be shown.


 


Allowable Cost: A cost is
allowable only when the cost is reasonable and allocable. The Contractor is
responsible for accounting for costs appropriately and for maintaining records,
including supporting documentation, adequate to demonstrate that any cost
claimed have been incurred, are allocable to the contract, and comply with
applicable cost principles in FAR Part 31 and DOD or DLA supplements. The
SCO may disallow all or part of a claimed cost that is inadequately supported.


 


Acquisition Cost: The amount identified
as the original cost or estimated replacement cost paid for property.


 


Acquisition Value: The amount
indicated on Delivery Order that is computed by multiplying the “Quantity” by
the “Item Unit Price”.


 


Alternative Dispute Resolution (ADR): Any procedure
(for example, mediation, conciliation, facilitation, fact-finding, etc.), or
any other method to which the parties agree for resolving issues in
controversy, except the term does not include unassisted negotiations.


 


Bid Percentage: The amount, expressed
as a percentage of Acquisition Value, offered by the Contractor.


 


Business Day: Any day that is not a
Saturday, Sunday or a Federal Government observed holiday. Federal holidays
presently include New Year’s Day, Martin Luther King, Jr. Day, President’s
Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veteran’s Day,
Thanksgiving Day and Christmas Day.


 


Contractor’s Purchase Price: The
Acquisition Value of a particular item of property multiplied by the applicable
Bid Percentage offered.


 


Controlled Property Center (CPC): A DRMS facility
where property is reviewed and verified.


 


CONUS: Continental United States.


 


Day: A business calendar day.


 


Defense Reutilization and Marketing Office (DRMO): The
organization entity having responsibility for the control over disposal
property.


 


Defense Reutilization and Marketing Service (DRMS): The
organization vested with operational command and administration of the Defense
Reutilization and Marketing Program. 


 


Demilitarization Code: A single
character alpha code assigned by the Item Manager identifying the degree of
demilitarization necessary prior to accomplishing final disposition of an item.


 


Direct Cost: Costs identified specifically with a
contract.


 


DOD: Department of Defense.


 


Disposal Turn in Document Number (DTID):
A 14-position alpha/numeric combination used to identify a line item of
property consisting of Department Of Defense (DOD) address code, julian date


 


40

















 


and serial number. The DD Form 1348-1A/2 is the standard document for turn-in
of property to the DRMO. This may be submitted in electronic format.


 


Federal Supply Class (FSC): A commodity
classification code primarily used in the National Stock Number (NSN). The
first 2 digits of the code identify the group and the last 2 digits identify
the classes within the group.


 


Generator: The activity that produces the excess,
surplus, foreign excess or other property; usually the entity formerly in
physical possession and/or control of the property.


 


Hazardous Material (HM): Any material
that is capable of posing an unreasonable risk to health, safety, and property
during transportation in the United States. Overseas, HM is defined in the
applicable Final Governing Standards or Overseas Environmental Baseline
Guidance Document, and/or host nation laws and regulations.


 


Hazardous Waste (HW):
Any property regulated under the Resource Conservation and Recovery Act (RCRA)
or state regulation as a hazardous waste.


 


Invitation For Bid: An offer for
bid submission.


 


Line Item: A single line entry on a reporting form
that indicates a quantity of property located at any one activity having the
same description, condition code and unit cost. The reporting form can be
either a generator-initiated DTID/ETID, or a contractor-developed tally-in sheet
when used for furniture receipts. A line item may be comprised of one or
multiple units.


 


Local Stock Number (LSN): A locally
purchased item with no NSN assignment.


 


National Item Identification Number (NIIN): A 9-digit
number (immediately following the FSC) assigned to an item of supply that
differentiates it from all other items of supply.


 


National Stock Number (NSN): A 13-digit
number consisting of the 4-digit FSC and the 9-digit NIIN that is assigned to
identify an item of supply within the materiel management function. 


 


Performance Period: Timeframe of
the contract, to include any options offered.


 


Reasonable Cost: A cost is
reasonable if, in its nature and amount, does not exceed that which would be
incurred by a prudent person in the conduct of competitive business.
Reasonableness of specific costs must be examined with particular care in
connection with firms or their separate divisions that may not be subject to
effective competitive restraints. No presumption of reasonableness shall be
attached to the incurrence of costs by the Contractor. If an initial review of
the facts results in a challenge of a specific cost by the SCO, the burden of
proof shall be upon the Contractor to establish that such costs is reasonable.


 


Receipt In Place (RIP): Property being
held at a location outside the DRMS network although on the DRMS accountable
record during the disposal process and safeguarded by the Generator.


 


R/T/D: Reutilization/Transfer/Donation.


 


Sales Contracting Officer (SCO): A duly
appointed individual granted the authority to sell surplus and foreign excess
personal property by various prescribed methods of sale.


 


Scrap Property: A designation assigned
by or with the approval of DRMS personnel meaning the items has no value in
excess of that of the item’s basic material content.


 


Unallowable Cost: Any cost that,
under the provisions of any pertinent law, regulation, or contract, cannot be
included in prices, cost-reimbursements, or settlements under a Government
contract to which it is allocable.


 


Useable Property: A designation
assigned by or with the approval of DRMS personnel meaning that the item has
value in excess of that of the item’s material content.


 


41
















 


	
  SALE OF GOVERNMENT PROPERTY 

  AMENDMENT OF INVITATION FOR BIDS/MODIFICATION OF CONTRACT

  
	
   

  
	
  1.
  AMENDMENT TO INVITATION FOR BIDS NO.: 7

  	
   

  	
  2.
  EFFECTIVE DATE 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL
  AGREEMENT NO.:

  	
   

  	
  06/3/08

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.  ISSUED
  BY  

   

    DEFENSE
  REUTILIZATION AND MARKETING SERVICE 

    INTERNATIONAL SALES OFFICE, ATTN:DRMS-J-362  

    74 N WASHINGTON
  STREET  

    BATTLE CREEK MI 49017-3092

  	
  NAME
  AND ADDRESS WHERE BIDS ARE RECEIVED

   

  DEFENSE
  REUTILIZATION AND MARKETING SERVICE 

  INTERNATIONAL SALES OFFICE, ATTN:DRMS-J-362

  74 N WASHINGTON STREET  

  BATTLE CREEK Ml 49017-3092

  
	
   

  	
   

  
	
  x AMENDMENT OF INVITATION FOR BIDS NO.

  (See Item 6)  
 08-0001

  	
  DATED
  

  02/08

  	
  o MODIFICATION OF
  CONTRACT NO.     (See Item 8)

  	
  DATE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.
  THIS BLOCK APPLIES ONLY TO AMENDMENTS OF INVITATIONS FOR BIDS  

   

  The
  above numbered invitation for bids is amended as set forth in Item 9. Bidders
  must acknowledge receipt of this amendment unless indicated otherwise in Item
  11 prior to the hour and date specified in the invitation for bids, or as
  amended, by one of the following methods:  

   

  (a)  By
  signing and returning              copies
  of this amendment;

  
	
  (b)  By
  acknowledging receipt of this amendment on each copy of the bid submitted; or
  

  (c)  By
  separate letter or telegram which includes a reference to the invitation for
  bids and amendment number.  

   

  FAILURE
  OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE ISSUING OFFICE PRIOR TO THE HOUR
  AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR BID. If by virtue of
  this amendment you desire to change a bid already submitted, such change may
  be made by telegram or letter, provided such telegram or letter makes
  reference to the invitation for bids and this amendment, and is received
  prior to the opening hour and date specified.

  
	
   

  
	
  7. ACCOUNTING
  AND APPROPRIATION DATA (If required)

  
	
   

  
	
  8.  THIS APPLIES ONLY TO MODIFICATION OF CONTRACTS
  

   

  This
  Supplemental Agreement is entered into pursuant to authority of

  
	
   

  
	
  9.  DESCRIPTION
  OF AMENDMENT/MODIFICATION (Except as
  provided below all terms and conditions of the document      referenced in Item 5
  remain in full  force and effect)  

   

  DRMS
  is amending Request For Technical Proposals (RFTP)/Invitation For Bid (IFB)
  Number 08-0001 with the following change:  

   

  
	
   

  
	
  THE
  HOUR AND DATE FOR
  RECEIPT OF BIDS x IS NOT EXTENDED. o IS EXTENDED UNTIL             O’CLOCK
  
 (LOCAL TIME)          DATE

  
	
   

  
	
  10.
  BIDDER/PURCHASER NAME
  AND ADDRESS (Include
  ZIP Code)

  	
  11. x

  	
  BIDDER
  IS NOT REQUIRED TO SIGN THIS DOCUMENT

  
	
   

  	
  o

  	
  PURCHASE
  IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN ORIGINAL AND 0 COPIES TO THE
  ISSUING OFFICE

  
	
   

  	
   

  
	
  12.
  SIGNATURE FOR BIDDER/PURCHASER  

   

   

  	
  15.
  UNITED STATES OF AMERICA

   

   

  
	
  BY
  

  	
  BY

  	
  /s/
  Tina Aldrich

  
	
  (SIGNATURE OF PERSON AUTHORIZED TO SIGN)

  	
  (SIGNATURE OF CONTRACTING OFFICER)

  
	
   

  	
   

  	
   

  
	
  13.
  NAME & TITLE OF SIGNER (Type or
  print)

  	
  14.
  DATE SIGNED

  	
  16. NAME OF CONTRACTING OFFICER 

  (Type or print)   

   

  TINA
  ALDRICH

  	
  17.
  DATE. SIGNED

    6/3/08

  
																			



 


	
  GPO : 1970 0F—390-461 (40-X)

  	
   

  	
  STANDARD
  FORM 114D  

  JAN.
  1970 EDITION  

  GENERAL
  SERVICES ADMINISTRATION 

  FPMR (41 CFR) 101-45.3  

  114-501

  



 


1

















 


Request For Technical Proposals (RFTPs)/Invitation For Bid (IFB)
08-0001 Amendment 7


 


The Request For Technical Proposals (RFTPs), Page 11, Paragraph
entitled, “Notice of Unacceptable Proposals”, is deleted in its entirety and
replaced by the following:


 


“When a technical proposal is
rated unacceptable, the SCO will notify the firm of the basis of the
determination and that a revision of the proposal will not be considered.
Requests for debriefings must be submitted by facsimile or electronic mail on
or before June 6, 2008. The SCO will provide the debriefing on or before June 10,
2008.


 


Unsuccessful bidders under step 2 of this two-step sealed bid process,
by written request submitted within 5 days after award, may request a
debriefing.”


 


////////NOTHING FOLLOWS/////////


 


2
















 


	
  SALE OF GOVERNMENT PROPERTY

  AMENDMENT OF INVITATION FOR BIDS/MODIFICATION OF CONTRACT

  
	
   

  
	
  1.  AMENDMENT
  TO INVITATION FOR BIDS NO.: 8

  	
  2.
  EFFECTIVE DATE 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL
  AGREEMENT NO.:

  	
  06/9/08

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.  ISSUED
  BY

   

  DEFENSE
  REUTILIZATION AND MARKETING SERVICE INTERNATIONAL SALES OFFICE,
  ATTN:DRMS-J-362

  74 N WASHINGTON STREET

  BATTLE CREEK MI 49017-3092

  	
  NAME
  AND ADDRESS WHERE BIDS ARE RECEIVED

   

  DEFENSE
  REUTILIZATION AND MARKETING SERVICE INTERNATIONAL SALES OFFICE,
  ATTN:DRMS-.J-362

  74 N WASHINGTON STREET
 BATTLE CREEK MI 49017-3092

   

  
	
  x AMENDMENT OF INVITATION FOR BIDS NO.

  (See Item 6)

  08-0001

  	
  DATED

  02/08

  	
  o MODIFICATION OF CONTRACT NO.

      (See Item 8)

  	
  DATE

  
	
   

  	
   

  	
   

  	
   

  
	
  6.
  THIS BLOCK APPLIES ONLY TO AMENDMENTS OF INVITATIONS FOR BIDS

   

  The above numbered invitation for bids is amended as set forth in Item
  9. Bidders must acknowledge receipt of this amendment unless indicated
  otherwise in Item 11 prior to the hour and date specified in the invitation
  for bids, or as amended, by one of the following methods:

   

  (a)  By signing and returning              copies
  of this amendment;

  (b)  By acknowledging receipt of this amendment on each copy
  of the bid submitted; or

  (c)  By separate letter or telegram which includes a
  reference to the invitation for bids and amendment number.

   

  FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE ISSUING OFFICE
  PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR
  BID. If by virtue of this amendment you desire to change a bid already
  submitted, such change may be made by telegram or letter, provided such
  telegram or letter makes reference to the invitation for bids and this
  amendment, and is received prior to the opening hour and date specified.

  
	
   

  
	
  7.
  ACCOUNTING AND APPROPRIATION DATA (If required)

  
	
   

  
	
  8.     THIS APPLIES ONLY TO MODIFICATION OF CONTRACTS

   

  This
  Supplemental Agreement is entered into pursuant to authority of

  
	
   

  
	
  9.     DESCRIPTION OF AMENDMENT/MODIFICATION (Except as provided below all terms and conditions
  of the document referenced in Item 5 remain in full  force and effect) 

  
	
   

  
	
  The
  Bid Opening Date for Invitation For Bid (IFB) Number 08-0001 has been changed
  to June 18, 2008, at 1:00pm EDST.

   

   

  THE
  HOUR AND DATE FOR
  RECEIPT OF BIDS o IS NOT EXTENDED, x IS EXTENDED UNTIL 1:00pm EDST   O’CLOCK (LOCAL TIME)               DATE June 18, 2008

   

  
	
   

  
	
  10.   BIDDER/PURCHASER NAME AND ADDRESS (Include ZIP Code)

  	
  11.

  	
  x

  	
  BIDDER
  IS NOT REQUIRED TO SIGN THIS DOCUMENT

  
	
   

  	
  o

  	
  PURCHASE
  IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN ORIGINAL AND 0 COPIES TO THE ISSUING
  OFFICE

  
	
   

  	
   

  	
   

  	
   

  
	
  12.   SIGNATURE FOR BIDDER/PURCHASER

  	
  15.

  	
  UNITED
  STATES OF AMERICA

  
	
   

  	
   

  	
   

  
	
  BY

  	
  BY 

  	
  /s/ Neil A.
  Watters

  
	
  (SIGNATURE OF PERSON AUTHORIZED TO SIGN)

  	
  (SIGNATURE OF CONTRACTING OFFICER)

  
	
   

  	
   

  
	
  13.   NAME & TITLE OF SIGNER (Type or print)

  	
  14.  DATE
  SIGNED

  	
  16.NAME OF CONTRACTING OFFICER (Type or print)

   

  NEIL
  A. WATTERS

   

   

  	
  17.  DATE
  SIGNED

   6/9/08

  
	
  GPO : 1970 OF—390-461 (40-X)

  	
  STANDARD
  FORM 114D

  JAN. 1970 EDITION
 GENERAL SERVICES ADMINISTRATION

  FPMR (41 CFR) 101-45.3
 114-501

  
														



 


1
















 


	
  SALE OF GOVERNMENT PROPERTY

  AMENDMENT OF INVITATION
  FOR BIDS/MODIFICATION OF CONTRACT

  
	
   

  
	
  1.  AMENDMENT TO INVITATION FOR BIDS NO.: 9

  	
  2.
  EFFECTIVE DATE 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SUPPLEMENTAL
  AGREEMENT NO.:

  	
  06/11/08

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.  ISSUED
  BY

   

  DEFENSE
  REUTILIZATION AND MARKETING SERVICE

  INTERNATIONAL SALES OFFICE, ATTN:DRMS-J-362

  74 N WASHINGTON STREET

  BATTLE CREEK MI 49017-3092

   

  	
  NAME
  AND ADDRESS WHERE BIDS ARE RECEIVED

   

  DEFENSE
  REUTILIZATION AND MARKETING SERVICE

  INTERNATIONAL SALES
  OFFICE, ATTN:DRMS-J-362
 74 N WASHINGTON STREET

  BATTLE
  CREEK MI 49017-3092

   

  
	
  x AMENDMENT OF INVITATION FOR BIDS NO.

  (See Item 6)

  08-0001

  	
  DATED

  02/08

  	
  o MODIFICATION OF CONTRACT NO.

      (See Item 8)

  	
  DATE

  
	
   

  	
   

  	
   

  	
   

  
	
  6.
  THIS BLOCK APPLIES ONLY TO AMENDMENTS OF INVITATIONS FOR BIDS

   

  The above numbered invitation for bids is amended as set forth in Item
  9. Bidders must acknowledge receipt of this amendment unless indicated
  otherwise in Item 11 prior to the hour and date specified in the invitation
  for bids, or as amended, by one of the following methods:

   

  (a)  By signing and
  returning              copies
  of this amendment;

  (b)  By acknowledging receipt of this amendment on each copy
  of the bid submitted; or

  (c)  By separate letter or telegram which includes a
  reference to the invitation for bids and amendment number.

   

  FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE ISSUING OFFICE
  PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR
  BID. If by virtue of this amendment you desire to change a bid already
  submitted, such change may be made by telegram or letter, provided such
  telegram or letter makes reference to the invitation for bids and this
  amendment, and is received prior to the opening hour and date specified.

  
	
   

  
	
  7.
  ACCOUNTING AND APPROPRIATION DATA (If required)

   

  
	
   

  
	
  8.     THIS APPLIES ONLY TO MODIFICATION OF CONTRACTS

   

  This
  Supplemental Agreement is entered into pursuant to authority of

  
	
   

  
	
  9.     DESCRIPTION OF AMENDMENT/MODIFICATION (Except as provided below all terms and conditions
  of the document referenced in Item 5 remain in full  force and effect) 

  
	
   

  
	
  DRMS
  is amending Invitation For Bid (IFB) Number 08-0001 with the following
  changes:

   

   

  THE
  HOUR AND DATE FOR
  RECEIPT OF BIDS x IS NOT EXTENDED, o IS EXTENDED UNTIL     O’CLOCK (LOCAL
  TIME)               
  DATE 

   

  
	
   

  
	
  10.   BIDDER/PURCHASER NAME AND ADDRESS (Include ZIP Code)

  	
  11.

  	
  x

  	
  BIDDER
  IS NOT REQUIRED TO SIGN THIS DOCUMENT

  
	
   

  	
  o

  	
  PURCHASE
  IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN ORIGINAL AND 0 COPIES TO
  THE ISSUING OFFICE

  
	
   

  	
   

  	
   

  	
   

  
	
  12.   SIGNATURE FOR BIDDER/PURCHASER

  	
  15.

  	
  UNITED
  STATES OF AMERICA

  
	
   

  	
   

  	
   

  
	
  BY

  	
  BY 

  	
  /s/ Neil A. Watters

   

  
	
  (SIGNATURE OF PERSON AUTHORIZED TO SIGN)

  	
  (SIGNATURE OF CONTRACTING OFFICER)

  
	
   

  	
   

  
	
  13.   NAME & TITLE OF SIGNER (Type or print)

  	
  14.  DATE
  SIGNED

  	
  16.NAME OF CONTRACTING OFFICER (Type or print)

   

  NEIL
  A. WATTERS

   

   

  	
  17.  DATE
  SIGNED

   6/11/08

  
	
  GPO : 1970 OF—390-461 (40-X)

  	
   STANDARD
  FORM 114D

   JAN. 1970 EDITION
 GENERAL SERVICES ADMINISTRATION

  FPMR (41 CFR) 101-45.3
 114-501

  
														



 


1

















 


The DRMS response to Question 374 of the Questions and
Answers (1 thru 377 to include all updates/follow-ons/clarifications) that were
incorporated into Invitation For Bid 08-0001 via Amendment 6 (dated 5/28/08) is
changed as follows:


 


Q374 - Can questions regarding the IFB be
submitted and addressed by DRMS after the RFTP due date?


 


A374 – Yes.


 


Revised A374 – No further
questions/updates/follow-ups/clarifications will be accepted or provided by
DRMS with regard to this IFB.


 


The following questions and answers have been posted to the
DRMS website and are incorporated into this IFB:


 


Q378 - Request Clarification
Statement regarding Q278. Question 278 and the agency’s answer stated:


 


Q278 – Has the CV2 Contractor resold
property directly to 3rd parties without the property being made
available for sale via online auction?


A278 - Yes, rarely.


 


A378 - During FY07, the CV2 Sales Contractor
sold approximately 45% of the property (by acquisition value) using a sealed
bid method and 55% using an online auction method. Whether by online auction or
sealed bid, all property sales were advertised and marketed on the Contractor’s
website as well as traditional offline marketing techniques (newspaper,
industry publications, and direct mail).


 


Q379 - The IFB
assesses a penalty of 50% of acquisition value for any item that DRMS has
identified as not eligible for sale (Controlled Property). “yet DRMS finds it
for sale on the Contractor’s website.” Given the fact that the portion of the
acquisition value delivered under CV2 sold under sealed bids is not visible on
website and that these items have a much lower sales value relative to their
original acquisition value, shouldn’t the penalty be lower for these low value
items as the 50% penalty will be more disproportionate to their resale value?


 


A379 – The penalty for advertising or
selling controlled property is 50% of the property’s acquisition value,
regardless of the market value of the  property.
All property must be advertised on the eFAS website regardless of the sales
method, sealed bid or auction.


(see question and response 124)


 


DRMS has issued a solicitation for a contractor to manage the Controlled Property Center (CPC)
function currently handled by the CV2 sales contractor. We have the following
related questions:


 


2

















 


Q380 - How are the responsibilities
between the control property center (CPC) small business contractor and the new
useable sales contractor going to be clearly delineated? Will the sales
contractor be indemnified for the  CPC small business contractor’s
mistakes for referring property to the sales contractor that is later
determined to be Controlled Property?


 


A380 – Contractor responsibilities are set
forth in the respective invitation and solicitation. All  property
will be referred by DRMS after DRMS determines the property is appropriate and
safe to sell. DRMS will not indemnify the Contractor for any improper property
referrals by DRMS. The agency is relying on the expertise of the Contractor to assist in the identification of any such oversights.


 


Q380A - Given that
the control property center (CPC) small business contractor has no penalty and,
perhaps savings, from recommending the destruction of saleable property, versus
processing and referring items to the sales channel, what is the incentive for
this small business contractor not to recommend the destruction of all, or the
vast majority of, property received at the
controlled property centers  including
valuable saleable items? 


 


A380A – Question is irrelevant to this sales invitation and should be directed
to the Contracting Officer responsible
for the CPC Solicitation SP4410-08-R-0001.


 


Q380B - Will  the
sales contractor have the ability to challenge
the improper scrapping out of property at the CPC’s? If so, how will
this process work?


 


A380B –  The sales contractor will not have the ability to challenge the scrapping of property under this sales  invitation.


 


Q380C - It would appear that  the CPC small business contractor
has the discretion to scrap F, G and H property. Given that historically
approximately 70% of the  acquisition value of property
referred under the surplus contract is
in F, G, and H condition, this would appear to be a significant new risk
factor which could reduce sales under the surplus contract. What safeguards
would prevent a large increase in the scrapping of this property by the new CPC small business contractor?


 


Q380C –  Question is irrelevant to this sales invitation and
should be directed to the Contracting Officer responsible for the CPC Solicitation SP4410-08-R-0001.


 


////////NOTHING FOLLOWS/////////


 


3